Nasdaq gains as investors buy the dip in the AI trade: Live updates

The Nasdaq Composite rose on Monday as traders moved back into tech following last week’s artificial intelligence-related rout.

The tech-heavy index added 1.2%, while the S&P 500 gained 0.5%. The Dow Jones Industrial Average traded around the flatline.

Intel advanced 2% after JPMorgan analysts upgraded their rating on the chipmaker. Advanced Micro Devices and Micron Technology were also up 1% and 2%, respectively.

However, neocloud mainstay CoreWeave reversed course from earlier gains, falling 3%, even after receiving an upgrade at Goldman Sachs. The stock plunged more than 25% last week — its biggest one-week drop since November 2025 — over debt concerns.

The S&P 500 lost nearly 2% last week — its biggest weekly decline since late June. The Nasdaq tumbled 4.5%, snapping a four-week winning streak. Information technology also shed more than 6% to post its worst weekly performance since April 2025. It was the most net sold global sector last week, with hedge funds selling the largest percentage of tech on record, per Goldman Sachs.

Concerns around the health of the AI trade took center stage after CNBC reported, citing sources, that Anthropic’s third-quarter revenue totaled $16.8 billion. And while that’s up from $11.6 billion in the second quarter, it raised flags among investors about the pace of growth with the AI build-out.

Investors in the corporate bond market have started to shun CoreWeave, with the company’s credit default swaps reaching distress levels.

LNW chief investment officer Ron Albahary believes the recent moves in CoreWeave’s spreads is a sign that the narrative surrounding the AI trade’s relative insulation from the rise in interest rates has changed. If earnings growth moderates, he thinks the market could become “increasingly more fragile.”

“Investors are going to become much more discriminating in terms of looking at whether these companies are going to generate the kind of return on capital to justify the debt that they’re taking on,” he said. “Prior to this wave, this sell-off, I think investors were assuming that all AI investments were going to pay off, and that’s not the case.”

Traders were also keeping a wary eye on oil markets with ship attacks in the Persian Gulf picking up and Ukraine and Russia trading attacks on energy infrastructure. Ukraine hit an oil terminal in St. Petersburg, Russia on Sunday. Longer-dated oil futures have begun to ratchet higher on expectations energy infrastructure disruptions may last well into 2027.

On Monday, Brent and West Texas Intermediate crude futures continued to trade higher. Brent rose slightly to trade at roughly $110 per barrel, while WTI was around 2% higher at nearly $104.

A slew of earnings from major companies such as Meta Platforms and Tesla hit the Street this week, with optimism those results will stabilize the market.