The main Wall Street indices opened higher on Monday, as chip stocks recovered from last week's decline, while investors await a key series of earnings from major technology companies that have led an AI-driven rally in the market.

The Dow Jones Industrial Average rose 8.2 points, or 0.02%, at the open to 52,154.57, while the S&P 500 gained 31.5 points, or 0.42%, to 7,489.18.

The Nasdaq Composite also climbed 200.6 points, or 0.79%, to 25,720.871, according to Reuters.

Semiconductor stocks have officially entered a bear market on Wall Street, after the Philadelphia Semiconductor Index lost more than 20% from its record high in June, ending a rally that had surged over 105% in three months.

The sell-off came amid growing concerns over lofty valuations of AI companies and investor questions about whether major tech firms can sustain their massive spending on AI infrastructure at the same pace.

Despite the recent decline, the chip index is still up more than 60% since the start of this year, as markets await earnings from major tech companies in the coming weeks to assess the future of the AI spending cycle.

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