A renewed surge in artificial intelligence shares pushed major U.S. indexes higher Monday, with Broadcom, TeraWulf and other AI-linked companies helping drive gains while most S&P 500 stocks declined.
By yourNEWS Media Newsroom
Wall Street ended higher Monday as renewed strength in artificial intelligence stocks powered gains across major indexes, sending the Dow Jones Industrial Average to another record close at 53,055 even as much of the broader market remained under pressure.
The S&P 500 rose 0.7%, moving to within 1% of its record. The Nasdaq composite climbed 1.1% as AI-related companies helped lead the session. The Dow added 0.3%, enough to set a new closing high.
The advance came despite weakness beneath the surface. A majority of stocks in the S&P 500 finished lower, underscoring how heavily the day’s gains depended on a smaller group of large technology and AI-linked companies.
Broadcom was among the biggest contributors to the S&P 500’s rise. The company gained 4.3% after announcing long-term agreements to supply silicon products to Apple. The move followed two difficult sessions for Broadcom last week, when the stock fell more than 2% on both Wednesday and Thursday before markets closed for the Fourth of July holiday.
AI shares have moved sharply in recent weeks as investors weigh the long-term potential of the technology against concerns that valuations have climbed too quickly. The sector has drawn large amounts of capital into chips, data centers and computing infrastructure, but questions have grown over whether those investments will generate enough productivity and profit gains to justify the spending.
That investor appetite is expected to face another test later this week when SK Hynix, the South Korean computer memory maker, plans to raise $28 billion through shares that will trade on the Nasdaq in the United States. The offering would rank among the largest U.S. listings ever, trailing SpaceX’s initial public offering last month, which raised $75 billion.
SK Hynix has already seen a sharp rally in Seoul, with its stock more than tripling this year on enthusiasm tied to the AI boom. But the shares have also been volatile, including a 14.6% drop on Thursday.
SpaceX, which owns the xAI business, has also had uneven trading following its high-profile public offering. The stock gave up an early gain and fell 0.9% in the final trading session before it is scheduled to be added to the Nasdaq 100 index, which tracks the largest non-financial companies listed on the Nasdaq.
The addition is expected to require index-tracking funds, including the QQQ exchange-traded fund, to buy SpaceX shares in order to mirror the Nasdaq 100.
Other AI-related companies also moved higher. TeraWulf rose 7.9% after saying Anthropic agreed to a 20-year deal to use the company’s data center in Kentucky. TeraWulf said it expects the agreement to generate roughly $19 billion in revenue as it shifts its business away from bitcoin mining and toward high-performance computing.
Outside equities, Treasury yields and oil prices were little changed. The yield on the 10-year Treasury slipped to 4.48% from 4.49% late Thursday.
A report on U.S. services activity showed growth in recreation, finance and other service-sector businesses was roughly in line with economists’ forecasts. The Institute for Supply Management survey also said some companies reported lower gasoline and diesel prices, easing some inflation pressures.
Oil prices drifted after OPEC+ said Sunday that seven members plan to increase production by a combined 188,000 barrels per day in August. It marked the fifth consecutive month in which OPEC+ members agreed to raise output.
Brent crude, the international benchmark, declined 0.5% to $71.79 per barrel. The price remains near where it stood before the United States and Israel attacked Iran in late February, a development that had sent oil prices higher.
Overseas markets were mostly softer. Indexes declined modestly across much of Europe and Asia, while Hong Kong’s Hang Seng stood out with a 1.1% gain.
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