The Nasdaq rose more than 1 percent on Monday as tech shares rebounded ahead of a big week for AI-related earnings, while European stocks and the euro fell as unrest in France added to concerns about the country's fiscal outlook. French bonds and Paris-listed stocks also fell as the widespread protests across France underscored the difficulties the government faces in reducing its large deficit. France's central government asked some local authorities to impose curfews as it faced pressure over security failings on Monday, after looting stemming from the protests. Tech stocks on Wall Street recovered some ground after a bruising week, with an index of semiconductors up 1.6 percent. On Friday, the index sank in its eighth straight day of declines, its longest losing streak since 2008. With results due from Meta on Wednesday, and results from Tesla and chipmakers Lam Research and Texas Instruments also due this week, investors will be watching for signs that massive AI spending ultimately pays off. "Investors are buying the correction dip that we had," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. "The market is now going to go through a very critical test over the next two weeks. We have some big-name earnings coming out," he said. "In terms of technology, the test of whether or not the spending on AI... will be met with satisfaction is going to be critical." The Dow Jones Industrial Average fell 36 points, or 0.1 percent, to 51,966, the S&P 500 rose 31 points, or 0.4 percent, to 7,690 and the Nasdaq Composite rose 290 points, or 1.1 percent, to 26,430. Meta is one of five AI hyperscalers expected to increase combined capital expenditure to about US$1.2 trillion next year, according to Goldman Sachs. Results from SpaceX are also due on Tuesday. Overall, US earnings are still expected to rise about 30 percent, largely driven by growth in the technology sector. US Treasury yields rose on Monday, with the benchmark 10-year Treasury yield coming off its biggest weekly drop in seven months, as concerns about the impact of higher interest rates on AI stocks abated. The yield on the benchmark US 10-year Treasury note was up 4.2 basis points at 5.14 percent. The pan-European STOXX 600 index fell 0.8 percent, while France's blue-chip CAC 40 index dropped 1.1 percent. France's 10-year yield earlier was up 13 basis points to 4.9 percent while the German 10-year yield, the benchmark for the euro zone, was also higher. (Reuters) Edited by Cecil Wong