NEW YORK — A rebound for AI stocks lifted the U.S. market on Monday.
The Standard & Poor’s 500 rose 0.7% and pulled back within 1% of its all-time high, even though the majority of stocks within the index fell. The strength for companies in the artificial-intelligence technology industry sent the Nasdaq composite 1.1% higher, and the Dow Jones industrial average rose 155 points, or 0.3%, to a record.
AI stocks have swung sharply in recent weeks on worries that their prices shot too high. Doubts are rising about whether all the dollars flowing into AI chips and data centers can possibly create enough gains in productivity and profits to recoup all the investments.
Broadcom was one of the strongest forces lifting the S&P 500 and rose 3.7% after announcing long-term agreements to provide silicon products to Apple. It was coming off two straight losses of more than 2% on Wednesday and Thursday, before Friday’s holiday ahead of the Fourth of July.
The global appetite for AI from investors will face an additional test this week: SK Hynix, the South Korean maker of computer memory, plans to raise $28 billion by selling shares of stock that will trade in the United States on Nasdaq. That would make it one of the biggest U.S. offerings, behind SpaceX’s initial public offering of stock from last month, which raised $75 billion.
SK Hynix’s stock in Seoul has already more than tripled so far this year because of the AI boom, but its day-to-day swings have included sharp losses in recent weeks. It fell 14.6% on Thursday, for example.
SpaceX, which owns the xAI business, has seen its stock likewise swing after its ballyhooed IPO.
It erased an early gain to fall 1% in the last day of trading before it’s scheduled to join the Nasdaq 100 index of the largest nonfinancial stocks. That inclusion will force funds, such as the QQQ exchange-traded fund, that mimic the index to buy SpaceX themselves.
Elsewhere in AI, TeraWulf climbed 4.9% after it said Anthropic agreed to a 20-year deal to use its data center in Kentucky. TeraWulf expects the deal to bring in roughly $19 billion in revenue. TeraWulf is in the midst of transitioning its business away from mining bitcoin and into high-performance computing.
All told, the S&P 500 rose 54.19 points to 7,537.54. The Dow added 155.84 points to 53,055.91, and the Nasdaq composite rallied 288.49 points to 26,121.16.
In the oil market, prices drifted after OPEC+ announced Sunday that seven of its members plan to expand oil production by a combined total of 188,000 barrels per day in August. It was the fifth straight month that OPEC+ members have agreed to raise output, moves that tend to weigh on oil prices.
The price of a barrel of Brent crude, the international standard, fell 0.2% to $71.99. That’s close to where it was before the United States and Israel attacked Iran in late February and sent prices spiking.
In the bond market, Treasury yields eased a bit. The yield on the 10-year Treasury fell to 4.47% from 4.49% late Thursday.
A report showed that growth last month for U.S. recreation, finance and other services businesses was roughly in line with economists’ expectations. The survey by the Institute for Supply Management said that some businesses said they were seeing lower prices for gasoline and diesel, easing inflationary pressures.
In stock markets abroad, indexes fell modestly across much of Europe and Asia. Hong Kong’s Hang Seng was an outlier and rose 1.1%.
Choe writes for the Associated Press. AP business writers Yuri Kageyama and Matt Ott contributed to this report.
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