Nasdaq climbs as chip and AI-linked stocks bounce back

The tech-heavy Nasdaq Composite led Wall Street gains on Monday as investors returned to the chip sector and other AI-related stocks following last week's bruising selloff, while investors waited for key corporate earnings reports. The benchmark S&P 500 and Nasdaq had posted their biggest weekly drop since late June on Friday, as concerns that higher interest rates could curb investments in AI infrastructure weighed on technology stocks, particularly data center operators. The selloff reflected mounting investor unease over how the costly AI build-out will be financed, a question that has increasingly pressured companies underpinning the U.S. bull market, which recently marked its fourth anniversary. The Philadelphia Semiconductor Index was last up about 2 percent, putting it on course to snap an eight-day losing streak in which it fell about 15.7 percent for its longest run of declines since October 2008. "Rubber bands can only stretch so far in one direction before they snap and start reversing, and you finally saw that enough-is-enough moment in the semiconductors after Friday's close