Wall Street recovers as AI storm abates
SPY•Wall Street rebounded on Monday as investors bought beaten-down technology shares and awaited earnings, while easing AI concerns pushed US yields up 3-4 basis points. The Nasdaq rose 1.1% and the S&P 500 gained 0.4%.
1. Stocks rebound
Wall Street recovered ground on Monday, with the Nasdaq up 1.1%, the S&P 500 up 0.4% and the Dow flat. Technology stocks rose 1.2%, consumer cyclicals gained 2.7%, and Western Digital climbed 6% while Amazon rose 5%; JPMorgan Chase fell 2%.
2. AI sentiment shifts
The semiconductor index rose 2.5%, ending an eight-day losing streak, its worst since October 2008. The move followed an 11.5% slide last week. South Korea’s KOSPI has rebounded 4% over two sessions but remains about 20% below its level two weeks ago. Investors are watching upcoming US earnings and company outlooks for signs that valuations are supported.
3. Bonds and global risks
Easing concerns over AI cooled recent safe-haven demand for bonds, pushing US yields up around 3-4 basis points across the curve. French bond prices fell as unrest weighed on markets. China reported third-quarter economic growth of 4.5%, faster than economists expected, driven by exports; its yuan reached a four-year high against the dollar.
