AI trade bounces back as chip stocks snap skid
SPY•The Nasdaq Composite rose more than 1% Monday as investors returned to chip and other AI-related stocks; the S&P 500 gained while the Dow slipped. The semiconductor index climbed nearly 2%, ending its eight-session losing streak.
1. Chips lead rebound
The Nasdaq Composite led Wall Street higher Monday as investors returned to chip stocks and other AI-related names after last week's sharp selloff, ahead of a packed week of earnings reports. The PHLX Semiconductor Index climbed nearly 2%, snapping an eight-session losing streak, its longest since an eight-day skid during the 2008 financial crisis.
2. Narrow market gains
The rally was not broad-based, with most S&P 500 sectors finishing lower. Consumer discretionary rose 2.7% and technology gained nearly 1.2%, while utilities fell about 2% and real estate dropped more than 1%. The Roundhill Magnificent Seven ETF gained nearly 1.7%.
3. Yields and sector moves
Rising yields pressured some rate-sensitive groups, including gold and silver miners, housing-related stocks and big banks. The S&P 500 Energy sector touched a fresh intraday record before paring gains, while utilities were down nearly 13% from their February 2026 record closing high.
