AI shares revive major US indexes
Artificial intelligence stocks recovered part of the previous week’s losses and lifted Wall Street on Monday. The S&P 500 rose 0.4%, while the technology-heavy Nasdaq composite gained 1.1%. However, most American stocks outside technology declined, and the Dow Jones Industrial Average slipped 0.1%.
Nvidia climbed 1.4% and became one of the strongest forces supporting the S&P 500. SpaceX gained 1.3%, while Cleveland-Cliffs surged 16.3% after reporting a larger profit than analysts expected. Meanwhile, South Korea’s Kospi advanced 1.8% as Samsung Electronics and SK Hynix helped the market recover.
Borrowing costs keep technology volatile
Investors remained concerned because much spending on AI chips and data centers has relied on borrowed money. Higher Treasury yields have increased financing costs and threatened the pace of industry expansion. CoreWeave demonstrated the uncertainty by moving from a gain above 7% to a loss before closing 0.4% lower.
Upcoming reports from Meta Platforms and Lam Research were expected to provide more information about demand for artificial intelligence investment. Analysts forecast 29% summer profit growth for S&P 500 companies compared with the previous year. Those expectations have supported record market levels despite inflation, war and pressure from bonds.
European protests increase bond pressure
European indexes fell more than 1% after violent protests in France over living costs and poor school conditions. The demonstrations could pressure governments to increase spending, adding to already heavy debt and strained budgets. Consequently, French bond yields rose more sharply than German yields.
In the United States, the 10-year Treasury yield climbed to 5.14% from 5.09% on Friday. Oil prices also remained unstable as the war with Iran disrupted expectations for the global energy industry. Brent crude moved between $107 and $110 before settling 0.3% lower at $109.55 per barrel.
References
Choe, S. (2026, October 19). AI stocks lead a rebound on Wall Street as European markets drop following protests. AP News. https://apnews.com/article/stocks-markets-oil-us-ai-494fbe4361a0360b2f6368e7a6d8f058