Wall Street, TSX rise after interest rate worries fuelled a sell-off Friday

U.S. stock markets recovered Monday after a volatile Friday, with the S&P 500 gaining 0.3% (21.99 points) to close at 7,405.73, offsetting a 2.6% drop the prior day. The Nasdaq composite rose 0.9% (220.23 points) to 25,929.66, while the Dow Jones Industrial Average dipped slightly by 80.77 points to 50,786.01. In Canada, the Toronto Stock Exchange closed up 0.19% (65.29 points) at 34,478.74 after losing over 800 points Friday. AI-driven tech stocks led the rebound, with Micron Technology jumping 9.9% after a 13.3% Friday plunge—the largest single-day loss in the S&P 500. Marvell Technology climbed 9.6% in its first trading day following its inclusion in the S&P 500 index, after its stock more than tripled this year, partly due to Nvidia CEO Jensen Huang’s comment suggesting it could become “the next trillion-dollar company.” Oil prices briefly surged above $98 per barrel for Brent crude after Israel and Iran exchanged strikes, raising fears of broader conflict. Prices later retreated as both sides signaled restraint. Meanwhile, Corning rose 5.6% after Amazon announced a multibillion-dollar deal for optical fiber and data center products, while Campbell’s dipped 0.9% despite stronger-than-expected quarterly profits. Analysts like Morgan Stanley’s Michael Wilson framed Friday’s sell-off as a healthy correction, noting markets rarely move in straight lines. He reiterated a target of 8,000 for the S&P 500, an 8.3% gain from Friday’s close. The rebound left investors questioning whether the drop marked the start of a downturn or just a pause in the AI-driven bull market.