US AI stocks rebound after weak jobs report, lifting S&P 500 and Dow to records

AI stocks rebounded this week, lifting the Dow and S&P 500 to record highs after a weak July jobs report eased Federal Reserve rate-hike concerns. Nonfarm payrolls unexpectedly fell by 23,000 in July, prompting traders to price in a 55% probability that the Fed holds rates in September. The S&P 500 gained 3.6%, the Nasdaq 5.2%, and the semiconductor ETF rose 7.6%. The rebound followed the collapse of leveraged hedge fund Situational Awareness, which had triggered forced selling in AI infrastructure stocks. SpaceX also announced it will build AI infrastructure exclusively on Nvidia.