US stocks advanced on Monday, paring last week's slump, as chipmakers rebounded amid a deluge of earnings reports that will test whether Big Tech's profits can match high expectations.

The S&P 500 and Nasdaq 100 rose as Nvidia and other semiconductor shares gained, offsetting concerns about stretched valuations. Investors are closely watching this week's earnings cascade from major technology companies for signs that artificial intelligence spending is translating into sustainable revenue growth.

Monday's advance follows a turbulent week where megacap stocks led a broad market selloff, wiping out trillions in market value. The rebound suggests traders are using the pullback as a buying opportunity ahead of critical quarterly results.

Key reports from Microsoft, Meta, Amazon, and Apple will provide clarity on whether the AI investment boom can justify current price multiples. Options markets imply significant volatility around these announcements.