The Nasdaq Composite rose 1.1% on Monday to close at 26,430.89, according to Nasdaq data, as artificial intelligence and chip stocks rebounded after a steep drop last week. The S&P 500 rose 0.4% to 7,690.73, and the Dow Jones Industrial Average fell 36.38 points, or 0.1%, to 51,966.03, the Associated Press reported.

The S&P 500 fell nearly 2% last week, its worst week since late June, and the Nasdaq dropped 4.5% over those five days, CNBC reported. Chip stocks surged on Monday, and the largest tech companies did better than the rest of the market, CNBC reported. Most US stocks outside AI and tech fell, the AP reported.

Nvidia rose 1.4% and was one of the biggest forces lifting the S&P 500, the AP reported. CoreWeave, which rents out AI chips over the cloud, jumped more than 7% in the morning but ended down 0.4%, after losing 25.2% last week. A fund that tracks South Korean stocks, led by memory chip makers SK Hynix and Samsung Electronics, rose 4%, CNBC reported.

Katie Stockton of Fairlead Strategies said the S&P 500 and Nasdaq need to hold support this week to avoid a further breakdown, CNBC reported. Investors are waiting for earnings from big tech companies, including Meta Platforms on Wednesday. Analysts expect profits for S&P 500 companies to grow 29% from a year earlier, according to FactSet, the AP reported.

The yield on the 10-year Treasury rose to 5.14% from 5.09% late Friday, the AP reported. It topped 5.30% earlier this month, its highest level since 2002. European stocks fell more than 1% after violent protests in France raised worries about government spending. Brent crude oil settled at $109.55 a barrel, down 0.3%.

What we know: The Nasdaq closed up 1.1% at 26,430.89 as AI and chip stocks rebounded.
What we don't: Whether this week's big tech earnings will extend the rebound.