NEW YORK — Stocks in the artificial-intelligence industry are bouncing back on Wall Street Monday and recovering some of their steep losses from last week, but the rest of the market and stocks worldwide are shaky.
The S&P 500 rose 0.6%, coming off its worst week since June, and the Nasdaq composite rallied 1.2% because it's full of technology stocks. The majority of U.S. stocks outside of AI and tech were falling, though, and the Dow Jones Industrial Average was up a more modest 0.1%, or 41 points, with an hour remaining in trading, after swinging between earlier losses and gains.
In Europe, indexes slid more than 1% following violent protests that could ultimately force the French government to increase its spending to ease voters' anger. That in turn could put even more pressure on bond markets, and yields cranked higher worldwide.
Even with all the cross currents flowing through financial markets, AI stocks stood out, as they have for most of the past few years. A frenzy in spending for AI technology has forced them to the forefront of the market, sending them to record prices and driving indexes higher. Last week, AI stocks grabbed the spotlight after tumbling on worries about how expensive it has become to borrow money, which could threaten the boom.
Much of the spending on AI chips and data centers has come from borrowed money, and Treasury yields in the bond market have recently hit their highest levels in years or even decades. That raises the cost of borrowing money for everyone.
Nvidia added 1.5% and was one of the strongest forces lifting the S&P 500. Because it’s the largest stock on Wall Street by total market value, a 1% move for its stock has more effect on the index than any other’s.
SpaceX, which controls the xAI business, rose 1.2% to $147.73. Its founder, Elon Musk, pledged on Monday to give one share of SpaceX to "every kid in America" next year. The offer came after Anthropic said over the weekend that it will commit 5% of the shares in its highly anticipated initial public offering of stock to a new "public benefit" fund.
The moves for AI stocks were still choppy, though. Consider CoreWeave, a company that's borrowed to buy AI chips that it rents out to customers over the cloud and has been at the center of the market’s swings. After initially jumping to a 7% burst in the morning, it flipped to a loss of 1.1%. That followed its loss last week of 25.2%.
The swings come ahead of some profit reports coming later in the week that could offer more details about the strength of AI-related spending.
Meta Platforms, which is pushing its Muse AI agent, will report its latest quarterly results on Wednesday. Lam Research, which supplies equipment and services for the making of semiconductors, will also talk about how its business is doing on Wednesday.
Expectations are high across the board for U.S. companies' profits from the summer. Analysts are forecasting overall growth of 29% for companies in the S&P 500 from the prior summer, according to FactSet. Those high expectations are what has allowed the U.S. stock market to run to records despite worries about war, high inflation and pressure from the bond market.
Cleveland-Cliffs rallied 17.1% after the steel company reported a bigger profit for the latest quarter than analysts expected. CEO Lourenco Goncalves said it was the strongest quarter for the company in three years and that the outlook for profit in 2027 “has improved materially” from three months ago.
In stock markets abroad, rebounds for AI stocks helped South Korea’s Kospi jump 1.8% to recover some of its 14.5% drop from last week. It is dominated by two huge players in the AI industry, Samsung Electronics and SK Hynix, which has made it much jumpier than other markets.
In Europe, bond yields climbed following the protests against the rising cost of living and poor school conditions. The protests could put pressure on governments to boost their spending to offer help, but that would likely only add to their already big piles of debt.
Yields rose for French bonds on worries about the government's already strained budget and climbed much more than yields for Germany, which investors have historically seen as a safer bet.
In the U.S. bond market, the yield on the 10-year Treasury climbed to 5.14% from 5.09% late Friday. It topped 5.30% earlier this month and touched its highest level since 2002.
Oil prices remained unsettled. The price for a barrel of Brent crude, the international standard, swung between $107 and $110 through the day before settling at $109.55, down 0.3%.
It has been yo-yoing between $97 and $110 this month on uncertainty about when the war with Iran will allow the energy industry to return to normal.
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AP Business Writer Chan Ho-him contributed to this report.
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This update corrects the previous version to reflect that CoreWeave’s stock had moved lower in the early afternoon.