Chip stocks drive a Wall Street rebound after AI sell-off

U.S. stock futures pointed higher before the open, and markets extended the rebound Monday as chipmakers and other companies tied to the AI build-out recovered from last week’s steep sell-off. The Nasdaq rose more than 1% in afternoon trading and the S&P 500 also gained, while the semiconductor index was on track to end an eight-session slide. The earlier retreat was not a sign that AI had lost its appeal; investors were questioning whether higher borrowing costs and rising debt at some data-center operators can support the enormous spending needed for new computing capacity. Monday’s move looks more like buyers returning after a rapid drop than proof those concerns have disappeared. This week’s tech earnings will be the more meaningful test of whether AI revenue can eventually catch up with the cost of building it.