That didn’t last very long. Friday saw the Nasdaq Composite post its largest one-day point decline on record, but stocks were already bouncing back to start the week. The market just can’t quit tech.

The S&P 500 added 0.3% and the Nasdaq Composite rose 0.9%. The Dow Jones Industrial Average was lower, but barely, with a 0.2% loss.

There wasn’t much in terms of news pushing tech stock higher; instead today’s gains show that investors view the chips slide more as more of a pause.

“After the strength of the recent rally, a pullback in markets was to be expected,” writes Ulrike Hoffmann-Burchardi, CIO Americas and global head of equities, UBS Chief Investment Office.

It’s worth remembering that the S&P 500 has only seen nine straight weeks of gains 13 other times in history, and certain AI-related areas of tech have already soared far beyond the sector as a whole this year. The iShares Semiconductor exchange-traded fund is up 90% so far in 2026.

“Following a historic run, investors seemed to be looking for a catalyst to take profits, with the driver being underwhelming guidance from Broadcom, worries about the economics of AI deployment, and rate worries following the payroll report,” says Mark Hackett, chief markets strategist for Nationwide. He added that today’s rebound is “a sign investors viewed last week’s weakness as a reset in crowded trades rather than the start of a broader risk-off move.”

Tech was the major driver behind the better-than-expected earnings growth in the first quarter of this year, as well as subsequent upward revisions, so it’s little wonder bulls aren’t cowed. As long as earnings are heading higher, stocks will likely to follow.

The Hot Stock: Meta Platforms +6.5%
The Biggest Loser: Tesla -8.2%

Best Sector: Information Technology +1.5%
Worst Sector: Utilities -1.9%

This week is light on the earnings front, but markets will be watching two other metrics instead: inflation and emotions.

Wednesday brings the Bureau of Labor Statistics’ consumer price index for May, which is expected to reflect a 4.2% year-over-year jump, four tenths of a percentage point more than April’s reading. Energy prices are the main culprit, but even when stripping those out along with food costs, core CPI is expected to increase 2.9%.

The next day we’ll get the producer price index for May from the BLS. The consensus calls are for a 6.4% annualized increase in PPI and a 5.4% rise in core PPI. The week wraps up with the University of Michigan’s consumer sentiment survey for June, with consensus calling a 46 reading—about one point more than May’s record-low reading.

All of this matters because consumer spending is still the main engine driving the U.S. economy. Investors have shrugged off signs of consumer distress because shoppers keep spending—even if they feel awful about higher prices. The wealthiest Americans in particular are splurging in a way that makes up for everyone else. One key takeaway from the nearly completed first-quarter earnings season is that companies catering to well-heeled shoppers have done well, while the rest are a bit of a mixed bag.

The inflation readings themselves are likely to attract more attention, but even large price increases in recent months haven’t done much to dent stocks. That’s because Wall Street is expecting a resolution to the Iran War sooner rather than later, despite all the false ceasefire starts, and because the labor market is still relatively strong. The thinking is that as long as people are bringing home a paycheck, they’re unlikely to pull back on spending in a major way. Americans are saving less, but those with investments have seen big portfolio gains.

There are two big takeaways from the market’s relative indifference to consumer pain and rising prices. The first is that artificial intelligence is still fueling earnings and spending, with everything else taking a backseat. As big tech companies rise, they bring indexes along with them.

The second is that however painful higher prices are for individuals, collectively the spending picture looks to be on firm ground. “Although the multi-decade surge in the value of households’ equity holdings has made U.S. activity more vulnerable to a stock selloff, the latest income, spending and employment data suggest that consumption growth can carry on at a 2% inflation-adjusted pace,” notes Chief US Investment Strategist Doug Peta.

That means we have Nvidia to thank not just for semiconductors, but ongoing consumer spending as well.

Academy Sports and Outdoors, Casey’s General Stores, J.M. Smucker, and SailPoint report quarterly results tomorrow.

The National Federation of Independent Business releases its Small Business Optimism Index for May. Economists forecast a 96.1 reading, little changed from the April figure.

The National Association of Realtors reports existing-home sales for May. The consensus estimate calls for a seasonally adjusted annual rate of 4.06 million homes sold, slightly more than in April.

—Dan Lam

• Should You Buy SpaceX Stock This Week?

• What Will Crypto Do to Financial Exchanges? It’s Too Soon to Panic.

• Apple Announces New AI-Powered Siri; Stock Slips

• Inflation Is an ‘Economic Thief.’ The Fed Must Act.

• Big Money Is Behind the Biggest Sporting Event Ever

Barron’s Live returns on Monday. Barron’s Live features timely and actionable insights for investors. We give you behind-the-scenes conversations with the newsroom, connecting you with our editors and reporters covering the markets, the economy, and more.

Sign up here