S&P 500 ticks higher as AI name Nvidia rebounds, EA surges on takeover

The S&P 500 inched up on Monday as Wall Street tried to regain its footing after a week in which the artificial intelligence trade lost some steam.

The broad market index climbed 0.1%, and the Nasdaq Composite advanced 0.4%. The Dow Jones Industrial Average lagged, however, falling 60 points, or 0.1%.

AI chip darling Nvidia rose after skepticism around the AI trade put pressure on the broader stock market last week. Some traders even questioned whether there was enough energy to power an infrastructure plan between Nvidia and OpenAI. Nvidia was last higher by 2%. Other AI stocks like Advanced Micro Devices and Micron Technology added 2% and 3%, respectively.

Meanwhile, shares of Electronic Arts jumped 4% after the video game company announced that it’s going to be taken private in a $55 billion deal. U.S. M&A announced has surpassed $1 trillion year-to-date so far this year, up 29% from the same time a year ago, according to Goldman Sachs.

U.S. stocks slipped last week as cracks appeared in a key pillar of the bull market rally — enthusiasm surrounding artificial intelligence buildout. The S&P 500 saw its worst weekly performance since Aug. 1. The Nasdaq also recorded its weakest week since early August, and the Dow posted first loss in three weeks.

But Venu Krishna, head of U.S. equity strategy at Barclays, believes that capital expenditures in the AI industry is still ultimately providing a boost to the market.