NEW YORK (AP) — A rebound for AI stocks is supporting Wall Street on Monday and helping to push indexes higher.
The S&P 500 rose 0.4%. The strength for companies in the artificial-intelligence technology industry sent the Nasdaq composite up 0.8%, as of 9:35 a.m. Eastern time, and the Dow Jones Industrial Average was up 85 points, or 0.2%.
AI stocks have been swinging sharply in recent weeks on worries that their prices shot too high in the euphoria around AI. Doubts are rising about whether all the dollars flowing into AI chips and data centers can possibly create enough productivity and profit gains to make back all the investments.
Broadcom rose 5.7% and was one of the strongest forces lifting the S&P 500, coming off losses of more than 2% from both Wednesday and Thursday at the end of last week. Micron Technology climbed 2.8%.
The global appetite for AI from investors will face an additional test later this week when SK Hynix, the South Korean maker of computer memory, plans to raise $28 billion by selling shares of stock that will trade in the United States on the Nasdaq. That would make it one of the biggest U.S. offerings ever, behind SpaceX’s IPO from last month, which raised $75 billion.
SK Hynix’s stock in Seoul has already more than tripled so far this year because of the AI boom, but its day-to-day swings have included sharp losses in recent weeks. It fell 14.6% on Thursday alone, for example.
SpaceX, which owns the xAI business, has seen its stock likewise swing following its ballyhooed initial public offering. It rose 2.4% in the last day of trading before it’s scheduled to join the Nasdaq 100 index of the largest non-financial stocks on the Nasdaq. That inclusion will force funds like the QQQ exchange-traded fund, which mimic the index, to buy SpaceX themselves.
Elsewhere in AI, TeraWulf jumped 16.9% after it said Anthropic agreed to a 20-year deal to use its data center in Kentucky. TeraWulf expects the deal to be worth roughly $19 billion. TeraWulf is in the midst of transitioning into high-performance computing and away from its old business of mining bitcoin.
In the oil market, prices were drifting after OPEC+ announced Sunday that seven of its members plan to expand oil production by a combined total of 188,000 barrels per day in August. It was the fifth straight month that OPEC+ members have agreed to raise output.
The price of a barrel of Brent crude, the international standard, edged down 0.1% to $72.07. That’s close to where it was before the United States and Israel attacked Iran in late February and sent prices spiking.
In the bond market, Treasury yields eased. The yield on the 10-year Treasury fell to 4.47% from 4.49% late Thursday. U.S. markets were closed Friday for Independence Day.
In stock markets abroad, indexes fell modestly across much of Europe and Asia. Hong Kong’s Hang Seng was an outlier and rose 1.1%.
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AP Business Writers Yuri Kageyama and Matt Ott contributed to this report.
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