AI Stocks Rebound Sends S&P 500 Within 1% of All-Time High

A broad recovery in artificial intelligence stocks lifted Wall Street indexes Monday, pushing the S&P 500 back to within striking distance of its record high even as the majority of individual stocks within the index declined.

Major Indexes Rise on AI Strength

The S&P 500 gained 0.7% as of 1:30 p.m. Eastern time, while the Nasdaq composite climbed 1.1%, driven by strength in AI-linked companies. The Dow Jones Industrial Average added 44 points, or 0.1%. The gains came despite most stocks within the S&P 500 finishing lower on the day — a sign of how much the market’s direction continues to be dictated by a small cluster of large AI-related names.

Broadcom Leads the Rally After Apple Deal

Broadcom was the single strongest contributor to the S&P 500’s advance, rising 4.3% after announcing long-term agreements to supply silicon products to Apple. The gain came after two consecutive daily losses of more than 2% last Wednesday and Thursday, before markets closed for the Fourth of July holiday.

SK Hynix US Listing Tests Investor Appetite for AI

Global appetite for AI investments faces a significant test later this week when South Korean chipmaker SK Hynix plans to raise $28 billion by listing shares on the Nasdaq — a move that would rank among the largest US stock offerings ever, behind SpaceX’s $75 billion IPO last month. SK Hynix’s stock in Seoul has more than tripled so far this year on the strength of the AI memory chip boom, though it has also been volatile in recent weeks, including a 14.6% single-day drop on Thursday.

SpaceX, which also owns the xAI artificial intelligence business, saw its own stock slip 0.9% Monday — the last session before it is scheduled to join the Nasdaq 100 index of the largest non-financial stocks. That inclusion will require index-tracking funds such as the QQQ ETF to purchase SpaceX shares automatically.

Anthropic Signs 20-Year Data Center Deal

Elsewhere in the AI sector, TeraWulf surged 7.9% after announcing that Anthropic agreed to a 20-year deal to use the company’s high-performance computing data center in Kentucky. TeraWulf expects the agreement to generate approximately $19 billion in revenue and represents a significant step in the company’s pivot away from bitcoin mining toward AI infrastructure services.

OPEC+ Raises Output for Fifth Straight Month

In the oil market, prices edged lower after OPEC+ announced Sunday that seven member countries plan to expand production by a combined 188,000 barrels per day in August — the fifth consecutive month of agreed output increases. Brent crude, the international benchmark, fell 0.5% to $71.79 per barrel, close to its pre-war level before the US-Israel strikes on Iran in late February sent prices surging.

Services Sector Growth Steady, Inflation Pressures Easing

A report from the Institute for Supply Management showed US services sector growth in June came in roughly in line with economists’ expectations. Several businesses surveyed noted lower prices for gasoline and diesel, suggesting that inflationary pressures tied to the Iran conflict are continuing to ease.

In the bond market, the 10-year Treasury yield edged down slightly to 4.48% from 4.49% late Thursday. Stock markets abroad declined modestly across much of Europe and Asia, with Hong Kong’s Hang Seng an outlier, gaining 1.1%.