U.S. technology and semiconductor shares rose Monday, reversing last week’s losses amid renewed interest in AI-driven equities.
U.S. stocks closed higher Monday, led by a rebound in technology and semiconductor shares as investors re-entered the AI sector following a brief sell-off. The move erased some of last week’s declines, though rising bond yields remained a key risk for equity valuations.
Prior to the rebound, the Nasdaq Composite had fallen nearly 3% last week, its worst weekly performance since October. Analysts cited overbought conditions in AI-related stocks and concerns over elevated Treasury yields as catalysts for the pullback.
The 10-year Treasury yield climbed back above 4.5% Monday, approaching levels last seen in November, which could pressure high-growth tech stocks sensitive to interest rate expectations.