Wall Street Holds Steadier as AI Stocks Recover Some of Their Sell-Off

Wall Street stabilized Monday after recovering from last week’s sell-off, with AI-driven stocks leading the rebound. The S&P 500 rose 0.3% to 7,405.73, reversing a 2.6% drop from Friday, while the Nasdaq composite climbed 0.9% to 25,929.66. The Dow Jones Industrial Average dipped slightly by 0.2% to 50,786.01. Semiconductor and memory companies, key players in the AI boom, drove gains after steep Friday losses. Micron Technology surged 9.9% following a 13.3% drop the prior day, continuing its year-to-date run where its stock has tripled. Marvell Technology jumped 9.6% in its first trading day after being added to the S&P 500 index, with its stock also tripling this year. The company’s surge was fueled by Nvidia CEO Jensen Huang’s remark suggesting it could become “the next trillion-dollar company.” Critics warn AI-related stocks may be overvalued, as a semiconductor index has risen nearly 85% year-to-date. Morgan Stanley strategist Michael Wilson called Friday’s correction “inevitable and healthy,” predicting the S&P 500 could still reach 8,000 by year-end, an 8.3% increase from Friday’s close. Corning gained 5.6% after Amazon announced a multibillion-dollar deal for optical fiber and cable production, while Campbell’s dipped 0.9% despite stronger-than-expected profits, as it prepares to drop from the S&P 500 when Marvell joins. In commodities, oil prices spiked after Israel and Iran exchanged strikes, threatening broader conflict. Brent crude briefly topped $98 but settled at $94.25, up 1.2%, as tensions eased. High oil prices have already contributed to rising inflation, adding economic uncertainty.