US stocks recovered on Monday as beaten down technology and semiconductor shares attracted buyers, helping Wall Street regain some ground after the Nasdaq 100 suffered its steepest weekly decline since the tariff turmoil of April 2025, according to Bloomberg.
Nasdaq 100 rose 1.2% in early trading, while the S&P 500 gained 0.6%. Semiconductor stocks led the recovery, with the Philadelphia Semiconductor Index climbing 2.9% and on course to end an eight session losing streak, its longest in 18 years.
The rebound extended beyond chipmakers, with data centre, neocloud and optical companies also advancing as investors returned to AI linked stocks following last week's sharp selloff.
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Chip stocks lead technology rebound
The recovery comes as investors reassess some of the more aggressive selling across the AI trade. Friday's rout had raised concerns about whether lofty valuations and heavy investment in artificial intelligence could be sustained, but Monday's move suggested buyers were willing to step back in after the steep correction.
“There will be a buying opportunity every time we see a day like Friday,” Edison Byzyka, chief investment officer at Credent Wealth Management, said, arguing that the large drawdowns in leading technology stocks were unwarranted.
CoreWeave was among the notable gainers, rising 3% after Goldman Sachs upgraded the cloud computing services provider to buy. The brokerage highlighted the company's revenue potential and tight supply.
The stock had come under heavy pressure last week as a sharp decline in its debt raised concerns over the sustainability of its business and the wider AI investment boom.
MoffettNathanson analyst Nick Del Deo pushed back against those concerns in a Monday note.
“We don’t believe that CoreWeave is circling the drain,” Del Deo wrote, pointing to the company’s “number of financing levers it can pull.”
He also described CoreWeave as an “extremely important” customer of Nvidia, which is “willing to use its heft to shape the end market for its products in a variety of ways,” while calling CoreWeave a “critical vendor to its customers, all facing compute shortages.”
SpaceX, Tesla in focus ahead of earnings
Elsewhere, SpaceX shares gained 2% after Elon Musk pledged to gift a share of the company to every American child. The move came shortly after AI rival Anthropic said it would set aside a portion of its shares for public benefit.
Tesla shares rose 1.9%, with the stock also in focus amid recent speculation over a possible combination between the electric car maker and SpaceX.
The technology heavy week is far from over. Earnings from SpaceX, Tesla and Meta Platforms are due later this week, keeping investor attention firmly on corporate results and the outlook for AI driven growth.
For now, Monday's rebound offers some relief to technology investors after last week's broad retreat, with chip stocks and other AI linked names once again driving the market's recovery.
