Wall Street rebounds as AI stocks regain favor

Wall Street stocks closed mostly higher on Monday, driven by renewed interest in artificial intelligence companies after recent losses, with the Nasdaq up 1.11% and the S&P 500 gaining 0.41%, while the Dow Jones remained nearly flat. The rebound followed a week where investors sold off AI-related stocks due to concerns over high valuations, debt levels, and Chinese competition, causing the Nasdaq to drop about 4.5%. Chipmakers including Nvidia, Broadcom, AMD, Intel, and Marvell all rose, though CoreWeave fell slightly after losing a quarter of its value last week. Investors are now awaiting quarterly results from SpaceX, Meta, Tesla, and Western Digital this week, which should provide insight into AI spending and returns. The 10-year Treasury yield rose to 5.14%, and Cleveland-Cliffs surged 16.34% after beating earnings expectations.