FX.co ★ US Stocks Start Week Higher

US stock indices rebounded from Monday’s sharp losses as the heavyweight chip sector stabilized, halting its recent selloff. The S&P 500 and Nasdaq 100 each rose more than 0.5%, while the Dow gained about 150 points. Major tech names traded mostly higher as investors continued to assess whether AI hyperscalers might slow their spending on AI infrastructure in coming quarters—a key driver of repeated guidance upgrades for the booming chip-manufacturing industry. Nvidia advanced 1.5%, and Alphabet climbed 2% ahead of its Wednesday guidance update, which will serve as a crucial indicator for both semiconductor demand and software-related capital expenditure.

Energy markets remained tense, with fuel prices elevated following renewed clashes between Iran and the US, as well as Houthi threats to target Saudi tankers in the Red Sea. Even so, Treasury yields extended their recent pullback and stayed below their latest highs. Credit-sensitive bank holding companies also held onto last week’s gains after a strong earnings season for the sector, with Goldman Sachs and JPMorgan each rising about 1%.