The U.S. stock market showed mixed performance, with artificial intelligence infrastructure stocks rallying and bolstering major indices. The S&P 500 rose by approximately 0.5%, the Nasdaq 100 climbed 1.2%, while the Dow Jones hovered slightly below its opening level.
The gains were primarily driven by buying activity in technology stocks, following pressure on the sector last week. Concerns regarding the performance of AI-related companies and mounting debt burdens among cloud service providers had previously triggered a sell-off in high-risk stocks.
"Buy-on-dip" sentiment pushed shares of AMD, Micron, Lam Research, and SanDisk up by about 5%. CoreWeave also saw a strong rebound, rising roughly 8%, after previously being among the stocks hit hardest by concerns over AI-sector financing.
In the bond market, credit concerns within the tech sector contributed to a decline in long-term Treasury yields. This eased worries regarding intense competition for capital between large corporations and the U.S. government, providing further support for technology stocks.
Meanwhile, banking stocks remained largely stagnant following the release of their financial results last week. Investors are now shifting their focus to the upcoming earnings reports from Meta and Tesla, which could determine whether the recovery momentum in technology stocks will continue.