Wall Street rallies by $1tn even as Bailey warns AI may not pay off

Wall Street gained about $1 trillion on Monday, snapping back after last week’s selloff tied to concerns about an AI-data-centre crackdown and a scandal involving Nvidia. Markets rallied as investors leaned into hopes that oil prices will fall, after Donald Trump said fresh Iran strikes were “highly unlikely.” The S&P 500 rose 2.1%, the Nasdaq 100 gained 2.4%, and the Dow Jones Industrial Average climbed 1.9%. The rebound followed a warning from Andrew Bailey, Governor of the Bank of England, who cautioned that bets on AI could take years to pay off and warned of an “AI bubble,” citing the long commercialization timeline of electricity after Thomas Edison. Despite more negative headlines around Nvidia, the Philadelphia Semiconductor Index surged as much as 7%.