U.S. stock markets went up on Monday, and many people on Wall Street were smiling again. After two tough days when prices fell, investors felt more hopeful, especially about companies working with artificial intelligence (AI).
The S&P 500 — a big list that tracks 500 important companies — rose by 37 points to 6,976. That might sound small, but for the stock market, it was a solid win. The tech-heavy Nasdaq also climbed, and the Dow Jones, which follows many older, well-known companies, jumped by more than 500 points.
AI helped stocks go up
Much of the good mood came from excitement about AI, which is computer technology that can learn, think, and help people solve problems. Companies that make computer chips for AI were the stars of the day. These chips are like the brains inside powerful computers used by big tech firms.
Big names like Alphabet (Google’s parent company) and Amazon rose before they release their earnings this week. Investors believe both companies will spend more money on AI and grow even bigger. Palantir, another tech firm that uses AI to analyze data, also went up before its report.
Chip makers such as SanDisk, AMD, and Micron did especially well. Analysts said demand for fast computer memory and processors is still very strong because AI needs lots of computing power. Their gains helped calm worries that tech stocks had become too expensive.
Small companies had a big day
Smaller businesses, tracked by the Russell 2000 index, did even better than large companies. This group is already up more than 6% in 2026, while the S&P 500 is up about 2%.
When small companies rise, many investors see it as a sign that the overall economy is healthy. Tim Ghriskey, a market expert in New York, said companies are making good profits and beating expectations.
Wall Street now thinks big companies made nearly 11% more profit in the last three months of 2025 than they did a year earlier — mostly thanks to technology businesses.
Winners, losers, and what’s next
Not every stock went up. Disney fell even though it made more money than expected, because fewer international tourists visited its U.S. theme parks.
Energy companies dropped as oil prices slid after signs that tensions between the U.S. and Iran might cool down. But cheaper fuel helped airlines — United, Delta, JetBlue, and Southwest all rose.
Good news also came from U.S. factories. A survey showed manufacturing grew in January for the first time in a year. At the same time, Wall Street’s “fear gauge,” called the VIX, fell to 16.2, meaning investors felt calmer.
Because of a partial government shutdown, the important January jobs report was delayed, but markets mostly shrugged this off.
Key market moves:
- S&P 500: +0.54% to 6,976
- Nasdaq: +0.55% to 23,592
- Dow Jones: +1.06% to 49,412
Overall, investors are betting that AI, strong profits, and a steady economy will keep stocks moving higher — at least for now.