Wall Street Recovers from Sell-Off as AI Stocks Bounce Back; Oil Rises on Israel-Iran Tensions
U.S. stock markets recovered Monday from last week's sharp decline, with the S&P 500 gaining 0.3% and the Nasdaq climbing 0.9%, driven by rebounds in AI-related semiconductor stocks. The recovery follows Friday's 2.6% drop in the S&P 500, the worst day since October, amid concerns that AI stock valuations had become overheated. The market's ability to sustain gains depends on whether the correction helps stabilize valuations or signals the beginning of a broader downturn.
Wall Street held steadier on Monday as markets recovered from a significant sell-off the previous Friday. The S&P 500 added 0.3%, the Dow dipped 0.2%, and the Nasdaq composite climbed 0.9%, with semiconductor and AI-related stocks leading the recovery. Micron Technology surged 9.9% after dropping 13.3% on Friday, while Marvell Technology rose 9.6% following its addition to the S&P 500 index. The semiconductor sector had experienced dramatic volatility, with a widely followed semiconductor index up nearly 85% for the year through Thursday. Oil prices also rose 1.2% to $94.25 per barrel following military strikes between Israel and Iran, though prices retreated after both nations appeared to step back from further escalation. Market strategists remain divided on whether Friday's decline represents a healthy correction or the start of a deeper downturn, with Morgan Stanley's Michael Wilson suggesting the pullback could help extend the bull market toward year-end.
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Wall Street holds steadier as AI stocks recover some of last week's sell-off
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