US stock markets opened higher on Monday, as technology shares recovered following a sell-off in artificial intelligence-linked stocks.
The Dow Jones Industrial Average dipped 38.37 points, or 0.07%, to 51,964.04 at 9:31 a.m. The S&P 500 gained 45.85 points, or 0.54%, to 7,703.58, while the Nasdaq Composite advanced 288.989 points, or 1.05%, to 26,424.21, according to real-time market quotes.
The rebound follows a difficult week for Wall Street. The Nasdaq Composite fell 4.5%, ending a four-week winning streak, while the S&P 500 lost nearly 2%, its biggest weekly decline since late June. The IT sector dropped more than 6%, marking its worst weekly performance since April 2025.
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Black Monday, which occurred on Oct 19, 1987, remains a landmark in market history. The Dow Jones Industrial Average plunged 22.6% in a single session, its largest one-day percentage decline.
On the stock-specific front, Intel gained 5% after JPMorgan analysts upgraded their rating on the chipmaker. AI infrastructure provider CoreWeave rose 4% after Goldman Sachs upgraded the stock. Advanced Micro Devices and Micron Technology added around 3% each. According to Goldman Sachs, technology was the most net-sold global sector last week, with hedge funds recording their largest percentage net selling of the sector on record.
Will the returns from artificial intelligence will justify the scale of investment in data centres, computing capacity and other infrastructure? That's the key concern on the investors' side. The focus has increasingly shifted from near-term earnings upgrades to the sustainability of capital expenditure and the cost of financing it.
Goldman Sachs traders said credit spreads for AI companies and hyperscalers had widened to their highest levels of the year. They cautioned that investors were increasingly assessing what could happen if AI spending growth slows, with financing costs, sustainability and returns on capital becoming central concerns.
Oil prices traded lower on Monday, although geopolitical risks remained on investors' radar. Brent crude fell more than 1% to nearly $108 a barrel, while West Texas Intermediate crude declined around 1% to approximately $100. Traders have been monitoring attacks on shipping in the Persian Gulf and strikes on energy infrastructure amid the Russia-Ukraine conflict. Ukraine struck an oil terminal in St. Petersburg on Sunday.
Investors are looking to a busy earnings calendar for direction after last week's technology-led decline. Results from Meta Platforms and Tesla are due this week, among other major corporate earnings.
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