After a challenging week for technology stocks, the Nasdaq Composite saw a recovery, gaining more than 1% on Monday following a 4.5% decline the previous week. This rebound indicates a renewed interest in tech, driven by an upgrade for Intel from JPMorgan, which saw its shares rise by 2%.
Other notable gainers included Advanced Micro Devices and Micron Technology, which increased by 1.8% and 3%, respectively. However, the optimism is tempered by ongoing concerns about funding, especially for neocloud companies. CoreWeave, despite receiving a buy rating upgrade from Goldman Sachs, saw its shares drop 0.4% after a steep decline of over 25% last week due to debt worries.
Oracle is also facing potential credit rating downgrades, with its current rating at BBB-, the lowest investment-grade level, and its five-year credit default swap spread reflecting increased risk, having risen 287% over the past year.
In the IPO landscape, expectations for AI company debuts have diminished, with OpenAI postponing its plans for 2026 and only Anthropic showing a significant chance of going public this year. Geopolitical tensions are also in focus, as former President Trump discussed potential meetings with Russian and Chinese leaders regarding the Ukraine conflict, further complicating the market environment.
Lastly, Elon Musk announced plans to distribute SpaceX shares to every child in the U.S., potentially worth $10.5 billion, which could have implications for the company's valuation and public perception