Wall Street Rebound: AI Stocks Rise and Oil Eases Ahead of Earnings Week

U.S. stocks joined the Wall Street rebound on Monday as AI-related shares recovered from last week’s sharp selloff, with easing oil prices and falling Treasury yields adding to investor optimism heading into one of the busiest earnings weeks of the season, according to Reuters.

The S&P 500 climbed 34.27 points, or 0.45%, to close at 7,693.71, while the Nasdaq Composite rose 249.13 points, or 0.95%, to 26,389.16, Reuters reported. The rebound came after the benchmark S&P 500 and the Nasdaq posted their biggest weekly drops since late June on Friday, pressured by technology firms as investors worried that higher interest rates could hamper heavy spending on AI infrastructure.

AI stocks rebound after a brutal week

AI-linked stocks led the bounce. In premarket trading, data center operator CoreWeave climbed 1.3%, chipmaker Broadcom added 2.3%, and Nvidia rose 1.1%. Amazon and Meta Platforms moved up marginally.

The broader technology sector rose 1.2%, helping lift the overall index despite losses across many other stocks. But the gains were narrow: on the New York Stock Exchange, declining stocks outnumbered advancing stocks by a ratio of 1.18 to 1. The S&P 500 recorded eight new 52-week highs and two new lows, while the Nasdaq logged 12 new highs but 120 new lows — a sign that many individual stocks remained under pressure even as the indexes rose.

Last week was one of the ugliest for technology investors in months. The Nasdaq-100 fell roughly 5.5% on the week and the S&P 500 about 2%, as markets began pricing in the cost of financing artificial-intelligence infrastructure rather than just the demand for it. Credit stress around heavy AI spenders, particularly data center operators, put a chill through the complex, and the VIX volatility gauge spiked toward 20.

Oil eases after Trump’s Russia sanctions waiver

Brent crude futures fell about 1.3% to around $108 a barrel after U.S. President Donald Trump decided to waive some sanctions on Russia. Secretary of State Marco Rubio said on Saturday that the president would take up to 60 days to assess the economic impact of the move.

The benchmark 10-year Treasury yield fell to 5.085%, easing the pressure on rate-sensitive growth stocks.

Energy markets remain volatile. Iran reported that another tanker had hit a mine in the Strait of Hormuz, while elevated shipping and insurance costs were keeping prices for actual oil delivery much higher than futures prices. Market analysts cautioned that the waiver messaging has been mixed and the underlying Middle East energy risk has not gone away.

Intel and Cleveland-Cliffs shine

Intel shares gained 5.1% after JPMorgan upgraded the chipmaker’s stock to “neutral” from “underweight.” Shares of steelmaker Cleveland-Cliffs surged 8.7% after the company reported third-quarter profit above analysts’ expectations.

China added a modest overnight lift: third-quarter GDP grew 4.5% year on year, a touch above the 4.4% expected, with industrial production and retail sales also beating forecasts — although weak fixed-asset investment limited the market reaction.

What to watch: a packed earnings calendar

Investors are now looking ahead to a heavy stretch of corporate results that will test whether earnings growth can support current valuations amid inflation concerns and market volatility, Reuters reported. Among the biggest names reporting this week:

• Tuesday: General Motors, GE Aerospace, Netflix, SpaceX
• Wednesday: Meta Platforms, Tesla, AT&T
• Thursday: Procter & Gamble, American Airlines

General Motors reports before the opening bell on Tuesday, with Wall Street expecting earnings per share around $3.70 on roughly $48.8 billion in revenue. Netflix reports after the close, while Meta and Tesla results land Wednesday.

Wall Street will be watching for commentary on AI capital spending, consumer demand and margins — the same issues that drove last week’s selloff. The Federal Reserve is in its blackout period ahead of the October 27–28 policy meeting, so there will be no official voice to talk markets through any wobble.

FAQ: Wall Street rebound and earnings week

Why did U.S. stocks rise on Monday?

AI-related stocks rebounded from their worst weekly selloff since late June, while Brent crude eased after President Trump waived some sanctions on Russia and the 10-year Treasury yield fell to 5.085%, according to Reuters. The S&P 500 gained 0.45% and the Nasdaq 0.95%.

What caused last week’s selloff?

Concerns that higher interest rates could hamper massive investments in AI infrastructure, particularly among data center operators, pressured technology shares. The Nasdaq-100 fell roughly 5.5% on the week.

Which companies report earnings this week?

Major names include General Motors, GE Aerospace, Netflix and SpaceX on Tuesday; Meta and Tesla on Wednesday; and Procter & Gamble and American Airlines on Thursday.

What are the key risks investors are watching?

Inflation concerns, the durability of AI spending, elevated oil prices tied to Middle East tensions, and the Federal Reserve’s October 27–28 meeting — with officials in blackout until then.

Sources: Reuters; Morningstar; Hindustan Times. Related business coverage: our Wall Street selloff report from October 16 and Asia markets selloff report.