The rebound in chip stocks, including Micron, Sandisk, and Seagate, marked a stark departure from the double-digit losses seen Friday. Markets reacted with relative indifference to Alibaba’s unveiling of its Qwen3.8 Max model, a move that contrasted sharply with the volatility triggered by Moonshot AI’s recent announcement. Citi Research analyst Alicia Yap noted that long-term dominance in the AI sector demands significant resources and a stable customer base, suggesting that firms with integrated, full-stack capabilities remain best positioned to navigate the competition. Alibaba shares responded by climbing 4.7%.

Energy markets faced volatility as Brent crude briefly breached $90 a barrel following U.S. strikes on Iranian infrastructure, before retreating on reports of potential de-escalation efforts. Domestic gasoline prices hit $4 per gallon, reflecting the regional tensions. Meanwhile, corporate news weighed on specific sectors: a judge blocked the $81 billion Warner Bros. Discovery and Paramount Skydance merger, while AMC Entertainment shares jumped 27% on strong box-office performance. Ryanair shares slipped 5.8% amid thinning profit margins.

In London, Andy Burnham assumed the role of prime minister, becoming the sixth leader in seven years following Keir Starmer’s resignation. The British pound gained ground on the news, bolstered by expectations of a fiscally conservative cabinet. With Federal Reserve officials in a blackout period ahead of next week’s interest-rate decision, investors are pivoting their attention toward upcoming earnings reports from Alphabet, Tesla, and IBM.