Chip rout weighs on oil optimism

US stocks were mixed Monday, as relief over falling oil prices was overshadowed by renewed anxieties in the AI trade.

Oil fell nearly 6% after the US and Iran paused strikes, but a new round of Nvidia deals exceeding $750 billion fueled investor concerns over AI’s circular funding and excessive capex, along with broader turmoil in semiconductor stocks: ASML plunged after The Information reported that a Chinese state firm would mass-produce advanced lithography machines, which the Dutch chipmaker currently has a stranglehold on.

Earnings from Meta, Microsoft, and Amazon expected later this week could fuel further volatility, amid fears of the “air being let out” of the AI bubble, a portfolio manager said.