Wall Street ended the first trading day of the week with strong gains on Monday, with the Nasdaq closing at a record high as investors returned to AI-related shares.
Sentiment in the technology sector improved after last week’s sell-off, which had been triggered by gloomy warnings from leading AI executives about the risks posed by the technology.
Investors instead focused again on the sector’s growth prospects. Continued falls in oil prices also eased concerns that higher energy costs could add further pressure to inflation.
The Dow Jones Industrial Average rose 0.7 % to 52,048.83. The broader S&P 500 gained 1.5 % to 7,764.70, while the tech-heavy Nasdaq climbed 2.3% to 27,122.09, its highest closing level on record.
The Dow had fallen for a third consecutive week last week, posting a weekly loss of 1.7%, its steepest decline since March. The Nasdaq still managed to rise 0.7% over the same period, despite concerns over AI.
Markets are now looking ahead to the main event of the week: a summit between President Donald Trump and Chinese President Xi Jinping, due to take place in Washington on Thursday.
Chipmakers were among the strongest performers. Intel jumped 12.1% and Marvell Technology rose 5.4%, helped by robust demand for semiconductors used in AI applications.
Facebook owner Meta gained 11.4%, while computer maker Dell added 1.2%. Nvidia rose 2.3% after already advancing more than 1% on Friday, when chief executive Jensen Huang said the company expected to sell twice as many AI chips over the coming year.
Advanced Micro Devices also benefited from the surge in demand for AI chips. Its shares ended 10% higher, lifting the company’s market value above $1 trillion for the first time.
