Stocks recovered Monday as technology and artificial-intelligence shares regained ground after their steepest weekly decline since June.
Semiconductor companies drove much of the advance. Broadcom gained 2. Intel also moved higher after JPMorgan raised its rating to Neutral from Underweight, saying the risk-reward balance had become more even after the stock’s decline.
The recovery did not erase the pressures that triggered last week’s selloff. Investors remain concerned that rising interest rates could make it more expensive to finance the large-scale construction of data centers and purchases of AI hardware.
Trading breadth underscored the rally’s narrow character. Most S&P 500 companies declined, and the index recorded eight new 52-week highs against two new lows. The Nasdaq had 12 new highs and 120 new lows. Cleveland-Cliffs rose sharply after reporting better-than-expected quarterly profit, but financial stocks including JPMorgan weighed on the Dow.
Attention now turns to corporate results. Meta Platforms and Tesla were scheduled to report after Wednesday’s closing bell, while Lam Research was also due to provide an update on semiconductor demand. Those results may give investors more information about whether heavy AI spending is translating into durable business growth as bond yields remain elevated.