Wall Street Rises as AI Stocks Recover; Nasdaq Sees Gains
Wall Street opened higher on Monday, driven by a rebound in artificial intelligence (AI) stocks. Investors returned to the sector following recent volatility, while also evaluating a planned mega share sale by South Korean chipmaker SK Hynix and an increase in oil output by OPEC+. The S&P 500 rose 0.4% in early trading, and the tech-heavy Nasdaq Composite gained 0.8%. The Dow Jones Industrial Average was up 85 points, or 0.2%, as of 9:35 AM Eastern Time.
Chipmakers and AI-linked companies led the gains. Broadcom climbed 5.7% after falling more than 2% in each of the previous two trading sessions. Micron Technology advanced 2.8%, contributing to the broader technology sector’s uplift. AI-related stocks have experienced sharp swings recently as investors reassess the potential returns from significant spending on AI chips, infrastructure, and data centers.
Investor interest in the sector will face another test later this week when SK Hynix plans to raise $28 billion through a US listing on the Nasdaq. This offering would rank among the largest ever in the United States, following SpaceX’s $75 billion initial public offering last month. Shares of SK Hynix, which have more than tripled this year amid the AI rally, saw heightened volatility, falling 14.6% in Seoul on Thursday after a prolonged run-up.
In other developments, SpaceX, which owns AI company xAI, rose 2.4% ahead of its scheduled inclusion in the Nasdaq 100 index. This addition is expected to trigger purchases by index-tracking funds. Among other AI-related stocks, TeraWulf surged 16.9% after announcing a 20-year agreement with Anthropic to provide data center capacity in Kentucky, which is projected to generate approximately $19 billion and supports its transition from bitcoin mining to high-performance computing.
In commodities, oil prices edged lower after OPEC+ agreed to increase production by a combined 188,000 barrels per day in August, marking the fifth consecutive monthly output hike by the producer group. Brent crude slipped 0.1% to $72.07 a barrel. US Treasury yields also eased, with the benchmark 10-year yield falling to 4.47% from 4.49% before Friday’s Independence Day market holiday. European and most Asian equity markets traded lower, although Hong Kong’s Hang Seng Index gained 1.1%.
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