US STOCKS-S&P 500, Nasdaq climb as AI-linked stocks recover ahead of earnings

General Motors

Mon 15:31

Indexes: Dow down 0.20%, S&P up 0.45%, Nasdaq up 0.95%
Intel shares rise after J.P.Morgan upgrades to 'neutral'
Cleveland-Cliffs gains after Q3 profit beat
CoreWeave gets a 'buy' rating from Goldman Sachs
Updates for market open
By Tharuniyaa Lakshmi and Ragini Mathur
Oct 19 (Reuters) - The benchmark S&P 500 and the Nasdaq Composite gained on Monday, as AI-related stocks rebounded from last week's sharp selloff, with easing oil prices providing additional support ahead of key earnings reports this week.
Both indexes 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 US bull market, which recently marked its fourth anniversary.
The blue-chip Dow, however, was weighed down by modest declines in JPMorgan Chase JPM.N, Sherwin-Williams SHW.N and Visa V.N. The session coincided with the 39th anniversary of Black Monday, the 1987 crash when the Dow Jones Industrial Average index had tumbled 22.6%.
Chipmakers Broadcom AVGO.O climbed 2.2% and Micron MU.O jumped 4.3% on Monday. The Philadelphia Semiconductor Index .SOX rose 2.5%, putting it on course to end an eight-day losing streak, its longest run of declines since October 2008.
Amazon.com AMZN.O was up 2.3% after Morgan Stanley named the e-commerce and cloud computing firm as its "top pick".
Goldman Sachs upgraded CoreWeave CRWV.O to "buy" from "neutral", saying the recent selloff offers a buying opportunity. Shares of the data center firm were last up 0.2%, after plunging more than 25% last week on worries over its $50 billion debt load.
"The tech sell off last week because of the rise in interest rates and the problems with CoreWeave sending shockwaves through the market. I don't think that is over just yet," said Sam Stovall, chief investment strategist at CFRA Research.
"Certainly, corporate reports are all going to be important this week, but investors will be evaluating which companies are most vulnerable."
Meta META.O is expected to beat Wall Street expectations when it reports results on Wednesday. Elon Musk-led Tesla's TSLA.O earnings are also due that day, while SpaceX SPCX.O is scheduled to report on Tuesday.
At 09:52 a.m. ET, the Dow Jones Industrial Average .DJI fell 102.02 points, or 0.20%, to 51,900.39. The S&P 500 .SPX gained 34.27 points, or 0.45%, to 7,693.71, while the Nasdaq Composite .IXIC rose 249.13 points, or 0.95%, to 26,389.16.
Most S&P 500 constituents posted losses but the heavy-weight technology sector .SPLRCT led gains with a 1.2% increase.
Brent futures LCOc1 were last down 1.3% at around $108 a barrel, following US President Donald Trump's decision to waive some sanctions on Russia. O/R
Intel INTC.O shares rose 5.1% after J.P.Morgan upgraded the stock to "neutral" from "underweight."
Cleveland-Cliffs CLF.N surged 8.7% after the steelmaker surpassed analysts' estimate for third-quarter profit.
Declining issues outnumbered advancers by 1.18-to-1 on the NYSE, while advancing issues outnumbered decliners by the same ratio on the Nasdaq.
The S&P 500 posted eight new 52-week highs and two new lows, and the Nasdaq Composite recorded 12 new highs and 120 new lows.

 (Reporting by Tharuniyaa Lakshmi and Ragini Mathur in Bengaluru; Editing by Shilpi Majumdar)
 ((tharuniyaa@thomsonreuters.com))