NEW YORK — The U.S. stock market is wavering Monday following last week's sell-off led by the tech and AI industries.
The S&P 500 edged 0.1% higher, coming off its third straight losing week, and remains within 3% of its all-time high. The Dow Jones Industrial Average was up 431 points, or 0.8%, as of 2:07 p.m. Eastern time, and the Nasdaq composite fell 0.2%.
Stocks rose earlier in the day before turning unsteady. They initially got a lift from sharp drops for oil prices, which headed back down in their latest yo-yo move on uncertainty about when the war with Iran will allow the global industry to return to normal. The price for a barrel of Brent crude, the international standard, fell 7.9% to $104.48.
The price for the most actively traded contract in the Brent market has been veering between roughly $70 and $120 per barrel since just before the war began, and it’s been quick to reverse direction.
So have stocks in the artificial-intelligence industry, which have been shaky for months amid criticism that they surged too high and are in a bubble. Worries are growing that all the hundreds of billions of dollars Big Tech companies are pouring into AI data centers won’t yield enough productivity and profit to make the investments worth it.
The latest profit reports from Alphabet and other Big Tech companies also showed how AI may be dragging on their own businesses. Not only did Google's parent company burn through more cash during the latest quarter, as measured by something called free cash flow, it also reported slower-than-expected growth in its search business, which raised worries about AI cannibalizing its cash cow.
But Alphabet rose 1.4% Monday, recovering some of its drop of more than 12% from Thursday, which was its worst in history.
Other tech giants also held steadier. Nvidia rose 0.4% following its 4.2% slide on Friday.
Outside of AI and tech, several stocks climbed after reporting better profits for the summer than analysts expected.
Marriott International rallied 3.9% after reporting strength for its hotels around the world. Even in the Middle East, where the war has affected its business, CEO Anthony Capuano said that “trends improved meaningfully” from the spring.
Idexx Laboratories leaped 20.5% after likewise delivering stronger profit and revenue for the latest quarter than analysts expected. The company, which sells diagnostic equipment and other products to veterinarians, also raised its forecasts for revenue and profit for the full year of 2026.
Expectations are high for all kinds of companies to continue to deliver big gains in profits as the U.S. economy keeps chugging along, even with high inflation and interest rates. A report on Monday said that growth for U.S. manufacturing was better last month than economists expected. Perhaps just as importantly, a measure of inflation in the survey by the Institute for Supply Management showed prices were rising at a slower pace.
Monday's drop in oil prices, meanwhile, helped launch stocks of companies with big fuel bills. United Airlines flew 5% higher, Southwest Airlines climbed 3.6% and cruise operator Carnival rose 4.6%.
They helped offset a 11.1% drop for Marvell Technology after it announced a deal to buy Lumentum, which sells lasers and other products that power the networks and infrastructure behind AI and cloud computing.
Marvell said it will give 4.5 of its shares for each Lumentum share, valuing it at roughly $115 billion. Lumentum’s shares dropped 17.3%.
Apple was the single heaviest weight on the market and fell 2% ahead of its profit report, which is scheduled to arrive after trading ends for the day.
In stock markets abroad, indexes rose in Europe. The swings were larger in Asia, where South Korea’s Kospi jumped 2.2% on renewed strength for the tech giants that dominate its market.
In China, indexes rose 1.1% in Shanghai and 0.4% in Hong Kong to recover some of their steep recent losses. Stocks in Shanghai finished October more than 15% below a peak reached in May.
The People’s Bank of China said Monday that around 100 billion yuan ($15 billion) would be deployed under a new program that could help support the market. ___
AP Business Writers Chan Ho-him and Michelle Chapman contributed to this report.
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