Tech Stocks Bounce Back After Brutal Week, but Wall Street Says AI Earnings Will Decide What Comes Next

NEW YORK, Oct. 19 (TodayViralUSA) — Technology shares clawed back some of last week’s steep losses on Monday, lifting the Nasdaq more than 1%, as investors positioned for a heavy run of earnings from Meta, Tesla, SpaceX and major chipmakers that analysts say will determine whether the rebound can last.

The Nasdaq Composite rose 1.11% to 26,430.89 and the S&P 500 gained 0.41% to 7,690.73, while the Dow Jones Industrial Average slipped 0.07% to 51,966.03, Reuters reported. The PHLX Semiconductor index climbed 1.6% after falling for eight straight sessions through Friday, its longest losing streak since 2008.

A bounce from oversold levels

Last week the S&P 500 lost nearly 2%, its worst week since late June, and the Nasdaq fell 4.5%, CNBC reported, as investors worried about the heavy borrowing behind the artificial intelligence buildout. Some of the hardest-hit names led Monday’s recovery: Intel rose 2.4% after a 14% drop last week, while Micron and Marvell gained about 3% and 4%, The Wall Street Journal reported.

Strategists cautioned against reading too much into one session. “Tech earnings are key this week,” Barclays’ Ajay Rajadhyaksha wrote. Wells Fargo Investment Institute’s Sameer Samana called the recent slide a “reality check” rather than “a full-blown unraveling,” but said pressure could last through the midterms.

Earnings in focus

SpaceX reports after the bell on Tuesday, Meta on Wednesday, and Tesla, Lam Research and Texas Instruments are also due this week. Of the 47 S&P 500 companies that had reported third-quarter results by Monday, 85% beat expectations, and the index is on track for blended earnings growth of 29%, according to CNBC. Goldman Sachs expects five AI hyperscalers, including Meta, to lift combined capital spending to about $1.2 trillion next year, Reuters said.

“Investors are going to need proof statements from any company that is considered part of the AI trade that they can deliver on the earnings growth expectations being built into their pricing,” said Ron Albahary, chief investment officer at LNW.

Oil and yields stay high

Energy costs remain a backdrop. Brent crude settled down 31 cents at $109.55 a barrel after briefly topping $110 last week for the first time since May, while U.S. West Texas Intermediate rose $2.25 to $103.66, its highest close since Sept. 15. The 10-year Treasury yield ended near 5.14%. Overseas, European stocks and the euro fell as violent cost-of-living protests in France raised new doubts about the country’s ability to cut its deficit.