AI and Chip Stocks Remain Fragile 23/09/2026

Market Wrap

U.S. stocks rallied Monday as a surge in technology shares, falling oil prices and lower Treasury yields helped Wall Street rebound from a mostly negative week.

The S&P 500 climbed 1.5% to 7,764.70, while the Nasdaq Composite jumped 2.3% to a record close of 27,122.09, its first since June. The Dow Jones Industrial Average gained 366 points, or 0.7%, to 52,048.83.

Artificial-intelligence and semiconductor stocks powered the advance. Intel (INTC) surged 12%, Advanced Micro Devices (AMD) jumped about 10% as its market value reached $1 trillion, and Qualcomm (QCOM) gained more than 9%.

Markets also benefited from a sharp retreat in energy prices. West Texas Intermediate crude dropped 4.5% to $95.78 a barrel, while Brent fell more than 3% to $100.34. The 10-year Treasury yield declined more than four basis points to 4.95%, easing some of the pressure on equity valuations.

But the relief proved short-lived. Oil prices turned higher as renewed U.S.-Iran tensions revived concerns over potential supply disruptions, putting geopolitical risk back at the center of the market narrative.

Investors are also looking ahead to this week's Trump-Xi summit in Washington, where artificial intelligence, tariffs, rare-earth minerals and the Iran conflict are expected to feature prominently.

Tuesday's calendar includes the Richmond Fed manufacturing survey and remarks from New York Fed President John Williams and Richmond Fed President Tom Barkin. On the earnings front, AutoZone reports before the opening bell, followed by KB Home after the close.

AI Boom Runs Into a New Bottleneck: Power

The artificial-intelligence boom is creating a new constraint for the technology industry: access to electricity.

Morgan Stanley analyst Stephen Byrd estimates the U.S. could face a 33-gigawatt power shortfall through 2028 as rapidly expanding data-center demand outpaces the ability of the electric grid to add capacity.

The shortage could create opportunities for companies able to provide data centers with power more quickly. Byrd highlighted Cipher Digital (CIFR), Hut 8 (HUT), Riot Platforms (RIOT), Galaxy Digital (GLXY) and TeraWulf (WULF), expecting each to secure at least one significant data-center lease within the next six months.

Power-generation equipment could also benefit as data centers increasingly turn to on-site, or "behind-the-meter," electricity rather than waiting for connections to the public grid. Morgan Stanley highlighted Bloom Energy (BE), GE Vernova (GEV) and Cummins (CMI), while Solaris Energy Infrastructure (SEI) and Vistra (VST) could benefit from increased development activity.

SpaceX (SPCX) could also emerge as an unexpected beneficiary after its acquisition of APR Energy, a provider of mobile gas turbines and power plants, giving the company exposure to another critical constraint in the AI infrastructure buildout.

As AI investment accelerates, the infrastructure trade may increasingly expand beyond semiconductors and data centers toward the companies capable of supplying one of the industry's scarcest resources: power.

Stocks on the Move

• Lennar (LEN): Shares rose more than 4% after Berkshire Hathaway disclosed that it purchased more than 2.7 million shares of the homebuilder.
• Amgen (AMGN): Shares gained more than 3% after the biotech company reported positive Phase 3 trial results for dazodalibep, an experimental treatment for moderate-to-severe Sjögren's disease in adults.
• Grab Holdings (GRAB): Shares jumped more than 7% after CEO Anthony Tan disclosed the purchase of 10.4 million shares of the Singapore-based ride-hailing company.
• SoFi Technologies (SOFI): Shares climbed more than 1% after the fintech company announced that stablecoin settlement is now live across its debit and credit card program.
• Capri Holdings (CPRI): Shares surged 7% after WWD reported that the Michael Kors and Jimmy Choo parent has been in contact with potential buyers.
• Shopify (SHOP): Shares gained nearly 7% after the company said it will use Meta's AI agent, Muse, to enable agentic checkout on its platform.

Watchlist: SOFI, SHOP, LEN, AMGN, MU, ARM, CTAS, PAYX, GIS, CBRL, XOM, MSTR

Key Economic Events Today

Economic Data (EST)

• 09:45 AM — USD Flash Manufacturing PMI
• 09:45 AM — USD Flash Services PMI
• 10:05 AM — USD FOMC Member Barr Speaks
• 10:30 AM — USD Crude Oil Inventories

Earnings

Before Market Open: Cintas Corp. (CTAS), Paychex Inc. (PAYX), General Mills (GIS), Manchester United (MANU), Cracker Barrel (CBRL)

After Market Close: Stitch Fix (SFIX)