John Zechner, chairman and founder of J. Zechner Associates, joins BNN Bloomberg to discuss the outlook on the markets. <\/p>\n
NEW YORK (AP) \u2014 Wall Street is recovering some of its sell-off from Friday, as stocks swept up in the artificial-intelligence boom bounce back on Monday. Oil prices, meanwhile, are higher following fighting between Israel and Iran, but they have come off their peaks from overnight. <\/p>\n
The S&P 500 rose 0.7 per cent, coming off a drop of 2.6 per cent from Friday that was its worst since October. The Dow Jones Industrial Average was up 50 points, or 0.1 per cent, as of 12:01 p.m. Eastern time, and the Nasdaq composite was 1.4 per cent higher.<\/p>\n
Some of the best performers were companies that sell computer chips, memory and other products fueling the AI boom. They had plunged Friday amid worries that their prices had shot too high due to AI euphoria. Such worries dragged South Korea\u2019s Kospi index down 8.3 per cent early Monday, pummeling tech stocks there like Samsung Electronics and SK Hynix.<\/p>\n
But prices recovered as trading moved westward through Europe to New York. Micron Technology rose 11.1 per cent after sliding 13.3 per cent Friday for the largest loss in the S&P 500. That resumed a run where its stock has more than tripled so far in 2026.<\/p>\n
Marvell Technology climbed 15.1 per cent in its first trading after S&P Dow Jones Indices said the semiconductor company\u2019s stock has grown enough to join its widely followed S&P 500 index. Marvell\u2019s stock has also more than tripled so far this year, aided by a 32.5 per cent surge in one day last week. That was its best day since it began trading in 2000, and it came after Nvidia\u2019s CEO, Jensen Huang, suggested at a conference in Taiwan that Marvell could be \u201cthe next trillion-dollar company.\u201d<\/p>\n
That such a comment could add billions of dollars to a company\u2019s value in an instant suggests to critics that AI stocks are running too hot. Chip and memory companies are indeed reaping big growth in revenue and profit because of the AI boom, but their stock prices have been soaring at astounding speeds. A widely followed index of semiconductor stocks surged nearly 85 per cent for the year so far through Thursday, for example.<\/p>\n
Now, the question is whether Friday\u2019s drop is the start of a downturn or just a pause that shakes out excessive optimism.<\/p>\n
Michael Wilson, a strategist at Morgan Stanley, is relatively optimistic. \u201cMarkets rarely move in a straight line at the pace seen since the March lows,\u201d he wrote in a report. \u201cIn our view, a correction was inevitable and ultimately healthy if this bull market is going to extend into year-end\u201d and pull the S&P 500 to his baseline target of 8,000. That would be an 8.3 per cent rise from Friday\u2019s close.<\/p>\n
Corning climbed 6.2 per cent after Amazon announced a multibillion dollar deal where Corning will produce optical fiber, cable and other products for its data centers across the country.<\/p>\n
That helped offset a 1.1 per cent dip for Campbell\u2019s, which reported a stronger profit for the latest quarter than analysts expected but also a worse decline in revenue. The company\u2019s stock is also set to drop out of the S&P 500 index when Marvell Technology\u2019s stock joins it.<\/p>\n
In the oil market, prices jumped after Israel and Iran launched strikes against each other, threatening to drag the region back into full-scale war. The price for a barrel of Brent crude oil, the international standard, briefly topped USUS$98 overnight.<\/p>\n
But it later eased back after the Iranian military said that it was halting offensive operations. Brent\u2019s price was most recently at USUS$94.60 per barrel, up 1.6 per cent from Friday. <\/p>\n
High oil prices caused by the war with Iran have already sent inflation higher, which increases not only bills for households but also yields in the bond market. High yields\u00a0 worldwide recently have threatened to slow economies and undercut prices for stocks and all kinds of other investments. <\/p>\n
On Monday, Treasury yields held mostly steady following a jump on Friday. The yield on the 10-year Treasury rose to 4.56 per cent from 4.55 per cent late Friday.<\/p>\n
In stock markets abroad, indexes edged lower Europe following sharp losses in Asia. <\/p>\n
Japan\u2019s Nikkei 225 dropped 3.8 per cent after the Japanese government revised the country\u2019s annualized economic growth rate to 1.8 per cent for the first quarter this year, down from an earlier estimate of 2.1 per cent. <\/p>\n
Stocks also fell 1.7 per cent in Shanghai and 1.2 per cent in Hong Kong.<\/p>\n
Stan Choe, The Associated Press. Yuri Kageyama And Matt Ott, The Associated Press<\/p>\n","protected":false},"excerpt":{"rendered":"John Zechner, chairman and founder of J. Zechner Associates, joins BNN Bloomberg to discuss the outlook on the…\n","protected":false},"author":2,"featured_media":723385,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[62,276,277,45,49,48,77,61],"class_list":["post-723384","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-business","tag-ca","tag-canada","tag-international","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/723384","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=723384"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/723384\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/723385"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=723384"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=723384"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=723384"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}