NEW YORK – The U.S. stock market advanced Monday as a rebound in artificial intelligence-related companies pushed major indexes higher, helping the benchmark S&P 500 move within 1% of its all-time high despite broad weakness across much of the market.
Technology shares provided most of the momentum during the session, lifting the Nasdaq Composite while also helping the Dow Jones Industrial Average reach another record closing level. The gains reflected renewed investor interest in AI-focused companies following recent volatility that had raised concerns about lofty valuations across the sector.
The S&P 500 climbed 54.19 points, or 0.7%, to 7,537.54, while the Nasdaq Composite rose 288.49 points, or 1.1%, to 26,121.16. The Dow Jones Industrial Average added 155.84 points, or 0.3%, closing at 53,055.91.
Although most companies within the S&P 500 ended the day lower, a relatively small group of large technology stocks generated enough gains to lift the broader benchmark.
AI Sector Regains Momentum
Artificial intelligence stocks led Monday’s advance after experiencing sharp swings in recent weeks as investors questioned whether massive spending on AI infrastructure could ultimately generate sufficient profits to justify the industry’s enormous investment commitments.
Among the strongest performers was Broadcom, whose shares gained 3.7% after the company announced long-term agreements to supply silicon products to Apple. The advance followed two consecutive declines of more than 2% late last week before U.S. markets closed for the Independence Day holiday.
Investor attention is also shifting toward another significant test of enthusiasm for AI-related investments.
South Korean memory chip manufacturer SK Hynix plans to raise approximately $28 billion through a U.S. stock offering on the Nasdaq later this week. According to AP reporting, the transaction would rank among the largest U.S. public offerings on record, trailing only SpaceX’s initial public offering last month, which raised $75 billion.
The planned listing comes after SK Hynix shares in Seoul more than tripled this year amid surging demand linked to artificial intelligence technologies. Even so, the stock has experienced substantial volatility, including a 14.6% decline during Thursday’s trading session.
SpaceX and AI Infrastructure Stocks Remain in Focus
SpaceX has also experienced significant price swings following its highly anticipated stock market debut. Shares erased earlier gains to finish 1% lower during the final trading session before the company is scheduled to join the Nasdaq-100 Index, which tracks many of the exchange’s largest non-financial companies.
Its inclusion in the benchmark is expected to prompt index-tracking investment funds, including the Invesco QQQ ETF, to purchase SpaceX shares as they rebalance portfolios to match the index.
Elsewhere in the AI infrastructure sector, TeraWulf rose 4.9% after announcing that Anthropic had agreed to a 20-year contract to utilize the company’s Kentucky data center.
TeraWulf said the agreement is expected to generate roughly $19 billion in revenue over the life of the contract. The company has been shifting its business strategy away from bitcoin mining and toward high-performance computing services that support artificial intelligence workloads.
Oil Prices Ease After OPEC+ Production Decision
Energy markets remained relatively subdued after OPEC+ announced Sunday that seven member countries plan to increase combined oil production by 188,000 barrels per day beginning in August.
The decision marked the fifth consecutive month that OPEC+ producers have agreed to raise output, a move that generally increases global supply and places downward pressure on crude prices.
Bond Yields Edge Lower as Services Activity Meets Expectations
The bond market also reflected a modest shift in investor sentiment, with Treasury yields easing slightly during Monday’s trading session.
The yield on the benchmark 10-year U.S. Treasury slipped to 4.47% from 4.49% at Thursday’s close.
Economic data released during the day suggested that activity across the U.S. services sector remained broadly stable. According to the Institute for Supply Management (ISM), growth in industries including recreation, finance and other service businesses generally matched economists’ expectations last month.
The ISM survey also indicated that some businesses reported paying lower prices for gasoline and diesel fuel, suggesting easing cost pressures that could contribute to moderating inflation.
Global Markets Deliver Mixed Performance
Outside the United States, equity markets produced mixed results.
Major indexes across much of Europe and Asia finished modestly lower, reflecting cautious investor sentiment. Hong Kong’s Hang Seng Index stood out among the region’s major benchmarks, rising 1.1%.
The mixed international performance came as investors continued evaluating global economic conditions, monetary policy expectations and the outlook for corporate earnings, while closely monitoring developments in technology and artificial intelligence that have increasingly driven market performance.
Although concerns remain about whether heavy investment in AI infrastructure will generate returns sufficient to justify current valuations, Monday’s session demonstrated that large-cap technology companies continue to play an outsized role in shaping overall market direction.
This report is based on reporting by The Associated Press (AP).
Topics: Artificial Intelligence | Stock Market | S&P 500 | Nasdaq | Broadcom | OPEC+ | Oil Prices | Wall Street
