AI Stocks Rebound as Wall Street Eyes Big Earnings Week
Wall Street kicked off the week with a bounce. Futures tied to the Nasdaq and S&P 500 climbed Monday morning as AI stocks rebound from their sharpest weekly selloff since June, with easing oil prices and falling Treasury yields adding to investor optimism ahead of a packed earnings schedule.
The rebound follows a rough week for technology shares. The S&P 500 and the Nasdaq Composite posted their biggest weekly drop since late June on Friday, pressured by concerns that higher interest rates could hamper investment in AI infrastructure — particularly among data center operators. The Dow managed modest weekly gains, but the tech selloff dominated the narrative.
Monday’s turnaround was broad. S&P 500 e-minis were up 36 points, or 0.47 percent, and Nasdaq 100 e-minis gained 292.25 points, or 0.99 percent, while Dow e-minis edged up 18 points in early trading, according to Reuters.
AI Stocks Rebound in Premarket Trading
The recovery was led by the same AI-linked names that dragged the market lower last week. CoreWeave climbed 1.3 percent in premarket trading on Monday, while Broadcom added 2.3 percent, according to Reuters. Megacap stocks also moved higher, with Nvidia rising 1.1 percent and Amazon and Meta both gaining marginally.
The bounce suggests investors are willing to look past last week’s rate fears — at least for now. The benchmark 10-year Treasury yield fell to 5.085 percent, easing one of the pressures that hammered growth stocks last week. The 10-year yield directly affects interest rates on consumer and corporate loans, so its retreat gave traders room to breathe.
Still, strategists cautioned that one morning’s futures don’t make a trend. Last week’s selloff was the Nasdaq’s first losing week in more than a month, and the index will need sustained follow-through to repair the technical damage.
Oil and Treasury Yields Ease
Energy markets added to the positive mood. Brent crude futures fell 1.8 percent to around $107 a barrel on Monday, following President Trump’s decision to waive some Russia sanctions. WTI crude futures were down about 1 percent at $100.40 per barrel in early trading.
The lower oil prices came despite fresh tension in the Strait of Hormuz, where Iran reported another tanker had struck a mine. Elevated shipping and insurance costs are keeping the price of actual physical delivery well above futures prices, but traders bet that the sanctions waiver could allow more Russian diesel onto international markets.
Gold futures were little changed at $4,185 an ounce, while bitcoin traded around $82,500 — up from a weekend low near $80,600 — as cryptocurrency-related stocks also rose on the day.
Big Earnings Week: Meta, Tesla, SpaceX in Focus
Investors are looking ahead to a busy week of corporate results, and the biggest names in tech are front and center. Meta is expected to beat Wall Street estimates when it reports this week, according to analyst expectations cited by Reuters. Tesla, led by Elon Musk, is due to report on Wednesday, while SpaceX is scheduled to release results on Tuesday.
The stakes are high for all three. Meta’s results will test whether the social media giant’s massive AI spending is paying off. Tesla’s report comes as the electric-vehicle maker faces intense competition and questions about its margins. And SpaceX’s numbers will be watched as Musk continues to expand the company’s ambitions — he said recently that he would give a SpaceX share to every U.S. child next year.
Other major reporters this week include Netflix, General Motors, and GE Aerospace, giving investors a read across media, autos, and industrials.
Intel Pops on JPMorgan Upgrade
One of the session’s standout movers was Intel, whose shares rose 3.8 percent after JPMorgan upgraded the stock to “neutral” from “underweight.” The call gave beaten-down chip investors a reason to buy after months of underperformance.
The upgrade lands as the semiconductor sector tries to find its footing. Chipmakers have been caught between booming AI demand and investor anxiety about how long the capital-spending cycle can last at current interest rates — the same tension that defined last week’s selloff.
What the AI Stocks Rebound Means for Investors
Monday’s AI stocks rebound sets up a crucial test: can tech earnings justify the sector’s premium valuations, or was last week’s selloff a preview of a deeper correction?
The bull case is straightforward. AI demand remains strong, the 10-year yield is backing off its highs, oil is easing, and expectations for Meta and other megacaps are beatable. A string of strong results could quickly repair last week’s damage.
The bear case is that nothing fundamental has changed. Interest rates are still near 5 percent, AI infrastructure spending is enormous and debt-financed in places, and any disappointing guidance from Tesla or Meta could reignite the selling. With the midterms two weeks away and geopolitical risks elevated, volatility is unlikely to disappear.
For now, Wall Street is choosing optimism. Whether the AI stocks rebound holds will depend on what Meta, Tesla, and SpaceX actually deliver in the days ahead.