NEW YORK — A rebound in AI stocks is pushing Wall Street indexes higher on Monday.
The S&P 500 rose 0.7%, even as most index constituents fell. The Nasdaq Composite Index was up 1.3% as of noon ET, while the Dow Jones Industrial Average was down 40 points, or 0.1%, on strong performance by companies in the artificial intelligence technology industry.
AI stocks have soared in recent weeks on concerns that prices have risen too high. There are growing questions about whether all the money flowing into AI chips and data centers can generate enough productivity and profit growth to recoup all the investment.
Broadcom rose 3.8% after announcing a long-term deal to supply silicon products to Apple, making it one of the strongest forces pushing the S&P 500 index higher. The index is coming off two consecutive declines of more than 2% on Wednesday and Thursday last weekend before the Independence Day holiday.
Micron Technology rose 3.5% and Advanced Micro Devices rose 9.2%.
Investor global demand for AI will face a further test later this week as South Korean computer memory maker SK Hynix plans to raise $28 billion by selling U.S.-traded shares on the Nasdaq. That would make it the largest offering in U.S. history, second only to SpaceX’s IPO last month, which raised $75 billion.
The stock price of Seoul-based SK Hynix has already more than tripled this year due to the AI boom, but daily fluctuations include significant declines in recent weeks. For example, it fell 14.6% on Thursday alone.
SpaceX, which owns the xAI business, has seen its share price fluctuate as well following a highly successful initial public offering (IPO). The stock erased early gains and fell 0.7% on the final day of trading ahead of its inclusion in the Nasdaq 100 index, the largest non-financial index. The inclusion would force funds that mimic the index, such as the QQQ exchange-traded fund (ETF), to buy SpaceX itself.
Elsewhere in AI, Terrawolf jumped 12.3% after Anthropic announced it had agreed to a 20-year deal to use its Kentucky data center. TeraWulf expects the transaction to generate approximately $19 billion in revenue. TeraWulf is in the midst of transitioning its business from Bitcoin mining to high-performance computing.
In the oil market, prices were volatile after OPEC+ announced on Sunday that its seven members plan to increase crude oil production by a total of 188,000 barrels per day in August. This is the fifth consecutive month that OPEC+ countries have agreed to increase production.
The price of a barrel of international standard Brent crude rose less than 0.1% to $72.13. This is close to the level before prices skyrocketed in late February when the US and Israel attacked Iran.
In the bond market, US Treasury yields remained relatively stable. The yield on the 10-year U.S. Treasury note fell slightly to 4.48% from 4.49% late Thursday.
Growth in U.S. recreational, financial and other services businesses last month was broadly in line with economists’ expectations, the report said. According to the Supply Management Association survey, some companies said lower prices for gasoline and diesel were easing inflationary pressures.
In overseas stock markets, indexes in Europe and most of Asia declined slightly. Hong Kong’s Hang Seng was an outlier, rising 1.1%.
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