Financial Markets                      07/06 09:31

   A rebound for AI stocks is helping to support Wall Street and keep indexes 
mixed on Monday.

   NEW YORK (AP) -- A rebound for AI stocks is helping to support Wall Street 
and keep indexes mixed on Monday.

   The S&P 500 rose 0.5%, even though the majority of stocks within the index 
fell. The strength for companies in the artificial-intelligence technology 
industry had the Nasdaq composite 1.1% higher, as of 9:35 a.m. Eastern time, 
but the Dow Jones Industrial Average was down 160 points, or 0.3%.

   AI stocks have been swinging sharply in recent weeks on worries that their 
prices shot too high in the euphoria around AI. Doubts are rising about whether 
all the dollars flowing into AI chips and data centers can possibly create 
enough productivity and profit gains to make back all the investments.

   Broadcom rose 5.3% and was one of the strongest forces lifting the S&P 500, 
coming off losses of more than 2% from both Wednesday and Thursday at the end 
of last week, before the holiday for the Fourth of July. Micron Technology 
climbed 4.2%.

   The global appetite for AI from investors will face an additional test later 
this week when SK Hynix, the South Korean maker of computer memory, plans to 
raise $28 billion by selling shares of stock that will trade in the United 
States on the Nasdaq. That would make it one of the biggest U.S. offerings 
ever, behind SpaceX's IPO from last month, which raised $75 billion.

   SK Hynix's stock in Seoul has already more than tripled so far this year 
because of the AI boom, but its day-to-day swings have included sharp losses in 
recent weeks. It fell 14.6% on Thursday alone, for example.

   SpaceX, which owns the xAI business, has seen its stock likewise swing 
following its ballyhooed initial public offering. It rose 1.2% in the last day 
of trading before it's scheduled to join the Nasdaq 100 index of the largest 
non-financial stocks on the Nasdaq. That inclusion will force funds like the 
QQQ exchange-traded fund, which mimic the index, to buy SpaceX themselves.

   Elsewhere in AI, TeraWulf jumped 12.5% after it said Anthropic agreed to a 
20-year deal to use its data center in Kentucky. TeraWulf expects the deal to 
bring in roughly $19 billion in revenue. TeraWulf is in the midst of 
transitioning its business away from mining bitcoin and into high-performance 
computing.

   In the oil market, prices drifted after OPEC+ announced Sunday that seven of 
its members plan to expand oil production by a combined total of 188,000 
barrels per day in August. It was the fifth straight month that OPEC+ members 
have agreed to raise output.

   The price of a barrel of Brent crude, the international standard, edged up 
0.1% to $72.22. That's close to where it was before the United States and 
Israel attacked Iran in late February and sent prices spiking.

   In the bond market, Treasury yields eased a bit. The yield on the 10-year 
Treasury edged down to 4.48% from 4.49% late Thursday.

   A report showed that growth last month for U.S. recreation, finance and 
other services businesses was roughly in line with economists' expectations. 
The survey by the Institute for Supply Management said that some businesses 
said they were seeing lower prices for gasoline and diesel, easing inflationary 
pressures.

   In stock markets abroad, indexes fell modestly across much of Europe and 
Asia. Hong Kong's Hang Seng was an outlier and rose 1.1%.

   ___

   AP Business Writers Yuri Kageyama and Matt Ott contributed to this report.

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