LIVE MARKETS-AI trade bounces back as chip stocks snap skid 

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AI TRADE BOUNCES BACK AS CHIP STOCKS SNAP SKID

The Nasdaq Composite .IXIC led Wall Street higher Monday as investors returned to chip stocks and other AI-related names following last week's sharp selloff. The market's rebound came ahead of a packed week of earnings reports.

Semiconductors were among the day's biggest winners. The PHLX Semiconductor Index .SOX climbed nearly 2%, snapping an eight-session losing streak, its longest since another eight-day skid during the 2008 financial crisis. The rebound also helped S&P 500 Growth .IGX outperform S&P 500 Value .IVX for the first time in six sessions.

Still, the rally wasn't broad-based as most S&P 500 sectors finished lower.

Utilities .SPLRCU fell about 2% to post the steepest decline, while real estate .SPLRCR dropped more than 1%. Consumer discretionary .SPLRCD jumped 2.7%, while technology .SPLRCT gained nearly 1.2%.

Beneath the surface, the SOX's rebound was joined by strength in software and services .SPLRCIS, which rose more than 1.2%. The Roundhill Magnificent Seven ETF gained nearly 1.7%, adding to the day's strength in AI-related stocks.

Meanwhile, rising yields continued to pressure some rate-sensitive groups. Gold and silver miners .XAU, housing-related stocks .HGX, and big banks .SPXBK all lagged the broader market.

A couple of notable developments stood out. The S&P 500 Energy sector .SPNY touched a fresh record intraday high before paring gains into the close. Utilities, meanwhile, remain under pressure and are now down nearly 13% from their February 2026 record closing high.

Overall, Monday's action suggested investors were willing to revisit the AI trade, but market leadership remained concentrated rather than broad-based.

Here is a snapshot of where markets stood shortly after 4 p.m. ET.

(Terence Gabriel)

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