Wall Street opened higher on Monday, with the Nasdaq Composite climbing 1.13% as technology shares rebounded from last week's steep sell-off. The S&P 500 advanced 0.58%, while the Dow Jones Industrial Average slipped 92 points, reflecting a more cautious tone among blue-chip stocks.
The recovery follows a turbulent week in which concerns over rising borrowing costs, AI infrastructure spending, and the sustainability of tech companies' capital investments weighed heavily on market sentiment. The S&P 500 fell nearly 2% last week, its worst weekly performance since late June, while the Nasdaq Composite dropped 4.5%, snapping a four-week winning streak. The information technology sector lost more than 6%, its steepest weekly decline since April 2025.
AI stocks bounce back
Technology shares led the rebound, particularly those tied to artificial intelligence infrastructure and semiconductor demand. CoreWeave rose about 3% after Goldman Sachs upgraded the stock, following a more than 25% plunge last week amid concerns about its debt load and financing capacity. Broadcom and Micron Technology gained more than 2% and 3%, respectively, while Amazon added over 2%. Intel advanced 4% after JPMorgan upgraded the chipmaker to Neutral from Underweight, and Advanced Micro Devices traded 3% higher.
Despite the bounce, investors remain wary about whether AI infrastructure companies can generate sufficient returns to justify their massive capital expenditures. CoreWeave's rising borrowing costs and widening credit default swap spreads have amplified financing risk concerns across the sector. Additionally, Anthropic's reported third-quarter revenue of $16.8 billion, up from $11.6 billion in the prior quarter, has prompted questions about whether growth can keep pace with the heavy spending on computing infrastructure.
Oil prices ease, but supply risks persist
Oil prices declined on Monday, providing some relief to equity markets after energy costs contributed to last week's volatility. Brent crude futures fell more than 1.8% to around $107 a barrel, while West Texas Intermediate traded marginally lower at approximately $100. The pullback followed President Donald Trump's decision to waive some sanctions on Russia, with Secretary of State Marco Rubio stating the administration would take up to 60 days to assess the economic impact.
However, supply risks remain elevated. Iran reported that another tanker had struck a mine in the Strait of Hormuz, and attacks on energy infrastructure continued in Russia and Ukraine. Ukraine also struck an oil terminal in St. Petersburg over the weekend. Shipping and insurance costs have kept physical oil delivery prices high, and longer-dated futures have risen on expectations that disruptions could persist into 2027.
Earnings and Fed in focus
Investors are now turning to a busy week of corporate earnings, with Meta Platforms and Tesla reporting on Wednesday, alongside Netflix, General Motors, and GE Aerospace. These results will help assess whether corporate earnings can support current equity valuations amid concerns about AI spending and financing costs.
Meanwhile, the Federal Reserve is widely expected to keep interest rates unchanged at 3.75% to 4% during its October 27–28 meeting. Persistent inflation and elevated energy prices remain key challenges for policymakers as they balance price stability with economic growth.
This article is for informational purposes only and does not constitute financial advice.
