The S&P 500 and Nasdaq Composite rose on Monday as artificial intelligence (AI)-related stocks recovered from last week’s sharp fall. Lower oil prices also supported the market ahead of several major company earnings reports due this week.
Technology stocks lead market gains
The trading session also took place on the 39th anniversary of Black Monday, the October 1987 stock market crash when the Dow plunged 22.6%, Reuters reported. Shares of steelmaker Cleveland-Cliffs surged 8.7% after the company reported third-quarter profit above analysts’ expectations. The recent market selloff reflected growing concerns about how companies will pay for the expensive expansion of AI infrastructure . These concerns have put pressure on companies that have helped drive the US stock market’s bull run, which recently completed its fourth anniversary.
The Dow Jones Industrial Average fell on Monday as shares of JPMorgan Chase, Sherwin-Williams and Visa recorded small declines.
Amazon.com shares gained 2.3% after Morgan Stanley named the e-commerce and cloud computing company its “top pick. CoreWeave shares were last up 0.2% on Monday after falling more than 25% the previous week, according to Reuters. The move added to the recovery in technology stocks, Reuters reported.
He warned that the problems might continue, adding that investors would closely examine company earnings this week to identify businesses most at risk.
Goldman Sachs upgraded data center company CoreWeave to “buy” from “neutral,” saying the recent fall in its share price had created a buying opportunity. Sam Stovall, chief investment strategist at CFRA Research, said the technology stock selloff last week was driven by rising interest rates and concerns surrounding CoreWeave.
