Tech Stocks Rally After AI-Driven Losses Amid Market Volatility
Tech stocks recovered on Monday following an AI-triggered drop last week, with the S&P 500 Software Services index leading gains. While the Dow achieved a new milestone, investors scrutinized Big Tech's hefty AI investments. The market is awaiting Nvidia earnings and key economic data to determine future monetary policy shifts.
Tech stocks bounced back on Monday as the S&P 500 and Nasdaq posted gains after last week's AI-driven selloff. Software companies recovered from significant losses amid investor concerns over AI's impact on competition and margins.
The Dow reached an intraday record, while small-cap stocks also saw increases. Despite the rally, apprehension remains about Big Tech's substantial AI spending, which totals $650 billion, potentially straining company returns.
As markets look ahead to Nvidia's awaited earnings, investors remain vigilant about economic indicators due this week. These events play a critical role in shaping expectations for the Federal Reserve’s interest-rate decisions.
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