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

The tech-focused Nasdaq Composite rallied over 1% on Monday, as investors turned their attention back to AI-linked stocks after a steep sell-off the previous week. Oil prices retreated, providing further support ahead of major corporate earnings announcements. The S&P 500 and Nasdaq both experienced their largest weekly decline since late June, driven by worries that rising interest rates might dampen investments in AI infrastructure.

This sell-off highlighted investor concerns about the financing of AI development, a factor that has put pressure on U.S. companies as they celebrate their fourth anniversary in a bull market. CoreWeave, which was heavily impacted by last week's sell-off after its shares plummeted over 25% due to worries about a $50 billion debt load, rebounded 3.1% on Monday.

Goldman Sachs upgraded the neocloud company from "neutral" to "buy," viewing the recent drop as a potential buying opportunity. Nebius and Iren also saw gains of 4.7% and 6.5%, respectively. Chipmakers Broadcom and others were also in the spotlight.