Rebounding AI Stocks Boost S&P 500     07/06 15:32

   A rebound for AI stocks lifted the U.S. market on Monday.

   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.

   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%.