AI-related stocks lift U.S. indexes as Wall Street rebounds

U.S. equity markets recovered on Monday as a rally in artificial-intelligence stocks helped the S&P 500 climb 1.3% and the Nasdaq Composite gain 1.6%, the strongest performance among major indexes. The S&P 500 closed within 2.6% of its all-time high set last month, while the Dow Jones Industrial Average added 0.5%.

CoreWeave, a cloud provider of AI chips, surged 24.7% after reporting a smaller loss than expected for the summer and announcing that it holds roughly $9 billion in customer pre-payments and deposits for the next three months. The company also raised its revenue forecast for the year, prompting analysts to note progress toward self-funding.

The upbeat CoreWeave data lifted other AI-linked shares. Micron Technology rose 11.9%, Broadcom gained 4%, GE Vernova added 1.4% and Nvidia advanced 2.9%. Fossil Group, a retailer of watches and handbags, jumped 26.7% after posting stronger-than-expected quarterly profit and raising its revenue outlook.

Outside the technology sector, United Airlines fell 1.8% as oil prices rose, with Brent crude up 1.4% to $92.76 a barrel. Higher oil prices have pushed bond yields higher, following a worse-than-expected U.S. inflation reading that heightened expectations of further Federal Reserve rate hikes.

Australian market futures pointed to a 0.4% decline at the open, after the ASX had risen 0.3% the previous day. The Australian dollar weakened to US68.48¢.

Overall, the S&P 500 ended the session at 7,619.38, the Dow at 52,486.49 and the Nasdaq at 25,466.19. European and Asian indexes mostly posted gains.