Rebounding AI stocks send the S&P 500 within 1% of its record
[July 07, 2026] By
STAN CHOE
NEW YORK (AP) — 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, or 0.3%, to a record.
AI stocks have swung sharply in recent weeks on worries that their
prices shot too high. Doubts are rising about whether all the dollars
flowing into AI chips and data centers can possibly create enough gains
in productivity and profits to make back all the investments.
Broadcom was one of the strongest forces lifting the S&P 500 and 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 Friday’s 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 SpaceX’s IPO from last month, which
raised $75 billion.
SK Hynix’s 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. It fell 14.6% on Thursday alone, for example.
SpaceX, which owns the xAI business, has seen its stock likewise swing
following its ballyhooed initial public offering.
It erased an early gain to fall 1% in the last day of trading before
it’s 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.
Elsewhere in AI, 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. TeraWulf is in the
midst of transitioning its business away from mining bitcoin and into
high-performance computing.
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Michael Pistillo works on the floor at the New York Stock Exchange
in New York, Monday, July 6, 2026. (AP Photo/Seth Wenig)
 All told, the S&P 500 rose 54.19
points to 7,537.54. The Dow Jones Industrial Average added 155.84 to
53,055.91, and the Nasdaq composite rallied 288.49 to 26,121.16.
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. That’s close to where it was before the United
States and Israel attacked Iran in late February and sent prices
spiking.
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.
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.
In stock markets abroad, indexes fell modestly across much of Europe
and Asia. Hong Kong’s Hang Seng was an outlier and rose 1.1%.
___
AP Business Writers Yuri Kageyama and Matt Ott contributed to this
report.
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