AI-driven gains lifted U.S. markets, with Broadcom surging on an Apple deal, while oil prices eased after OPEC+ boosted output. Investors now await SK Hynix’s massive Nasdaq listing as AI momentum faces its next big test.
A rebound for AI stocks lifted the U.S. market on Monday. The S&P 500 rose 0.7% and pulled back within 1% of its all-time high, even though the majority of stocks within the index fell. The strength for companies in the artificial-intelligence technology industry sent the Nasdaq composite 1.1% higher and the Dow Jones Industrial Average rose 155 points (0.3%) to a record.
In the oil market, prices drifted after OPEC+ announced Sunday that seven of its members plan to expand oil production by a combined total of 188,000 barrels per day in August. It was the fifth straight month that OPEC+ members have agreed to raise output, moves that tend to weigh on oil prices. The price of a barrel of Brent crude, the international standard, fell 0.2% to $71.99. Thats close to where it was before the United States and Israel attacked Iran in late February and sent prices spiking.
A report showed that growth last month for U.S. recreation, finance and other services businesses was roughly in line with economists expectations. The survey by the Institute for Supply Management said that some businesses said they were seeing lower prices for gasoline and diesel, easing inflationary pressures.
Broadcom rose 3.7% after announcing long-term agreements to provide silicon products to Apple. It was coming off two straight losses of more than 2% on Wednesday and Thursday at the end of last week, before Fridays holiday in advance of the Fourth of July. The global appetite for AI from investors will face an additional test later this week when SK Hynix, the South Korean maker of computer memory, plans to raise $28 billion by selling shares of stock that will trade in the United States on the Nasdaq. That would make it one of the biggest U.S. offerings ever behind SpaceXs IPO from last month which raised $75 billion. SK Hynixs stock in Seoul has already more than tripled so far this year because of the AI boom but its day-to-day swings have included sharp losses in recent weeks falling 14.6% on Thursday alone.
SpaceX fell 1% in the last day of trading before its scheduled to join the Nasdaq 100 index of the largest non-financial stocks on the Nasdaq. That inclusion will force funds like the QQQ exchange-traded fund which mimic the index to buy SpaceX themselves. TeraWulf climbed 4.9% after it said Anthropic agreed to a 20-year deal to use its data center in Kentucky. TeraWulf expects the deal to bring in roughly $19 billion in revenue while it is in the midst of transitioning its business away from mining bitcoin and into high-performance computing.
In stock markets abroad, indexes fell modestly across much of Europe and Asia. Hong Kongs Hang Seng was an outlier and rose 1.1%.
In the bond market, Treasury yields eased a bit. The yield on the 10-year Treasury fell to 4.47% from 4.49% late Thursday.
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