Nasdaq Rebounds as Investors Return to Technology Stocks

U.S. stocks staged a broad recovery on Monday, led by technology shares as investors returned to the sector following last week’s sharp sell-off in artificial intelligence-related stocks. The Nasdaq Composite climbed 1.4%, while the S&P 500 advanced 0.7%. The Dow Jones Industrial Average added 52 points, or 0.1%, as risk appetite improved across Wall Street. Chipmakers were among the strongest performers. Intel gained about 5% after JPMorgan analysts upgraded the stock, while Advanced Micro Devices and Micron Technology rose roughly 3% and 4%, respectively. The gains suggest investors remain willing to buy technology stocks despite growing concerns over elevated AI valuations. The rebound follows a difficult week for U.S. equities. The S&P 500 fell nearly 2%, marking its biggest weekly decline since late June, while the Nasdaq dropped 4.5% and ended a four-week winning streak. The technology sector fell more than 6%, its worst weekly performance since April 2025. Investor concerns intensified after reports highlighted questions about the sustainability of the AI investment boom. Anthropic’s third-quarter revenue reportedly increased to $16.8 billion from $11.6 billion in the previous quarter, but the slower pace of growth raised concerns about whether massive AI infrastructure spending can continue to accelerate.