Wall Street indices opened with gains on Monday as semiconductor companies and chipmakers recovered from previous session's rout.
S&P 500 opened 0.5% higher at 7,519.23, tech-heavy Nasdaq Composite was up 0.81% at 24,042.04, and the Dow Jones Industrial Average extended gains to open 0.22% higher at 53,018.32.
Major chipmakers like Micron Technology Inc. and Advanced Micro Devices Inc. surged within minutes of the opening bell. Micron rose as high as 3% to $1,007.80 but pared gains to trade 1.5% higher, while AMD climbed 5% to $546. Intel Corp.'s scrip jumped as high as 5.08% to a high of $126.70.
ALSO READ: Micron Shares Zoom On Long-Term Memory Supply Pact With Ford
Micron has entered into a strategic agreement with Ford for long-term memory supply. The deal aims to strengthen supply of memory and storage solutions according to the company.
"Micron is expanding output of automotive memory solutions with capacity increases designed to support long product lifecycles and ensure sustained supply for production programs. The investments are part of Micron's efforts to scale supply with growing global demand for memory and storage," the company said in a press release.
The recovery comes after a rather tumultous week for the AI-linked giants. On Thursday, shares of MU, AMD, Sandisk, and others were under pressure as investors booked profits after a record-breaking rally.
"Investor interest remains strong, but the easy part of the rally is behind us. From here, the market will differentiate much more sharply between companies with pricing power, balance-sheet strength, and confirmed customer demand, and those merely attached to the AI narrative," said Harshal Dasani, Business Head at INVAsset PMS.
Others tech stocks such as Nvidia Corp. and Tesla Inc. also traded 1.17% and 2.33% higher at $197.04 and $402.65, respectively.
The Dollar Spot Index rose 0.2%, while euro fell 0.1% to $1.1420, British pound was little changed at $1.3354, and the Japanese yen fell 0.6% to 162.36 per dollar.
Crude oil prices fell marginally, with benchmark brent crude trading $72.10 per barrel levels and West Texas Intermediate trading 0.03% lower at $68.68 per barrel.
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