Wall Street steadied on Monday as some of the AI-linked stocks that led last week's sharp selloff clawed back part of their losses. According to LancasterOnline and KSAT, the market bounce was driven largely by AI "winners" recovering ground.
The S&P 500 advanced 0.6%, per an MSN report, following its first weekly loss in three weeks — only its third weekly decline since the end of March. Nvidia rose 1.9%, helping lift the broader market. MSN also noted that chipmakers including Micron and Sandisk rebounded, while Nebius pushed higher and the Nasdaq led on hopes tied to peace talks. Alphabet shares jumped on news of a new AI chip, according to Pluang.
The calm was uneven. LancasterOnline reported that world shares were mixed, with South Korea's Kospi dropping 4.5% as some AI stocks swooned. Yahoo Finance flagged choppy oil prices as another source of unease, keeping investors on edge even as futures edged up.
The bigger event is just ahead: a heavy week of corporate earnings. Yahoo Finance reported that markets are bracing for Big Tech results, and Benzinga said Microsoft investors are preparing for an "AI reality check" as the company's earnings near. Nvidia and Micron are both featured in a Zacks earnings preview, according to TradingView.
After a stretch in which AI enthusiasm powered much of the market's gains, the recent wobble raised a familiar question: are these valuations justified by real results? This week's earnings from the biggest AI spenders and chipmakers will offer the clearest test yet.
Why it matters: A handful of AI-linked megacaps now drive much of the broad market, so how their earnings land could set the tone for everyone's retirement and investment accounts, not just tech traders.