Nasdaq climbs over 1% as AI-linked stocks recover ahead of key earnings

The tech-focused Nasdaq Composite index contributed to Wall Street's gains on Monday, as investors turned their attention back to AI-related stocks following last week's sharp sell-off, reports indicate. Meanwhile, falling oil prices provided further support ahead of crucial corporate earnings announcements. Both the S&P 500 and Nasdaq indexes experienced their largest weekly decline since late June on Friday, driven by fears that rising interest rates might dampen investments in AI infrastructure, particularly impacting data center operators.

The sell-off stemmed from growing investor apprehension about financing the expensive AI initiatives, a concern that has increasingly troubled companies that form the backbone of the U.S. bull market, which recently celebrated its fourth anniversary.

CoreWeave, which was heavily impacted by last week's sell-off after its shares plummeted more than 25 percent due to worries over a $50 billion debt burden, rebounded by 3.1 percent on Monday. Goldman Sachs upgraded the neocloud company to a "buy" rating from "neutral," viewing the recent price drop as a potential buying opportunity. Other affected peers, Nebius and Iren, also rebounded, climbing by 4.7 percent and 6.5 percent, respectively. Chipmakers were among the other sectors showing positive movement.