Wall Street opened higher on Monday as technology shares recovered from last week’s sell-off and oil prices declined, with investors turning their attention to a busy week of corporate earnings.
The Nasdaq Composite rose 1.13%, while the S&P 500 gained 0.58%. The Dow Jones Industrial Average fell 92 points, reflecting a more cautious outlook for blue-chip stocks.
The rebound followed a difficult week for Wall Street, when concerns about rising borrowing costs, AI infrastructure spending and the sustainability of technology companies’ investments weighed on market sentiment.
AI stocks recover after last week’s sell-off
Technology stocks advanced in trading, led by companies exposed to artificial intelligence infrastructure and semiconductor demand.
CoreWeave shares climbed around 3% after Goldman Sachs upgraded the stock.
The data centre operator had plunged more than 25% last week amid concerns about its debt burden and ability to finance its expansion.
Broadcom and Micron Technology gained more than 2% and 3% respectively, while Amazon rose more than 2%.
Intel advanced 4% after JPMorgan upgraded its rating on the chipmaker to Neutral from Underweight.
Advanced Micro Devices traded 3% higher.
The recovery followed sharp losses last week.
The S&P 500 fell nearly 2%, marking its biggest weekly decline since late June, while the Nasdaq Composite dropped 4.5%, ending a four-week winning streak.
The information technology sector lost more than 6%, its worst weekly performance since April 2025.
Investors remain concerned about whether AI infrastructure companies can generate sufficient returns to justify their substantial capital spending.
CoreWeave’s rising borrowing costs and widening credit default swap spreads have added to concerns about financing risks across the sector.
Anthropic’s reported third-quarter revenue of $16.8 billion also prompted questions about the pace of growth in the AI industry.
Although revenue increased from $11.6 billion in the previous quarter, investors are assessing whether growth can support continued heavy spending on computing infrastructure.
Oil prices ease as investors monitor supply risks
Oil prices declined on Monday, offering some relief to equity markets after energy costs contributed to last week’s volatility.
Brent crude futures fell more than 1.8% to around $107 a barrel, while West Texas Intermediate traded marginally lower at approximately $100.
Prices eased following US President Donald Trump’s decision to waive some sanctions on Russia.
Secretary of State Marco Rubio said the administration would take up to 60 days to assess the economic impact of the move.
However, supply concerns remained elevated.
Iran reported that another tanker had struck a mine in the Strait of Hormuz, while attacks on energy infrastructure continued in Russia and Ukraine.
Ukraine also struck an oil terminal in St. Petersburg over the weekend.
Shipping and insurance costs have kept prices for physical oil deliveries elevated.
Longer-dated oil futures have also risen amid expectations that disruptions to energy infrastructure could persist into 2027.
Earnings and Federal Reserve outlook in focus
Investors are preparing for earnings from major companies this week, including Meta Platforms and Tesla on Wednesday. Netflix, General Motors and GE Aerospace are also scheduled to report results.
The results could help investors assess whether corporate earnings can sustain equity valuations amid concerns about AI spending and financing costs.
Meanwhile, the Federal Reserve is widely expected to keep interest rates unchanged at 3.75% to 4% at its October 27–28 meeting.
Persistent inflation and elevated energy prices remain challenges for policymakers as they seek to balance price stability with economic growth.
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