US stocks rebounded on Monday from last week’s selloff as investors reassessed the risks of slower spending on artificial intelligence and infrastructure. The S&P 500 rose 0.8% and the Dow advanced 1%, while the Nasdaq 100 outperformed with a 1.6% gain despite a sharp decline in Nvidia shares.
Broadcom, AMD, and Marvell each climbed about 6%, leading a strong session for AI-linked names after their steep losses on Friday. Those declines followed the Democratic Party’s takeover of Congress, which had prompted speculation about weaker future returns for AI companies and intensified existing worries about a potential slowdown in the sector’s growth. Applied Materials and Cisco added more than 4% apiece ahead of their earnings reports later this week.
By contrast, Nvidia fell 7% after CEO Jensen Huang admitted to having an affair with a suspected Chinese intelligence asset, an issue that could spur a Democratic-controlled Congress to push for tighter export restrictions on Nvidia’s chips. CoreWeave slipped 1% ahead of its own earnings this week and is now down 75% from last year’s record high, remaining a key bellwether for concerns about overspending on AI cloud-computing capacity.
