Stocks rebounded Monday on the revival of the artificial intelligence trade, as the developer of the Claude large language model and AI assistant filed for what would be the biggest initial public offering (IPO) in stock market history. Markets are also looking forward to quarterly reports from three more Magnificent 7 stocks , as well as this week's Federal Open Market Committee meeting, which begins tomorrow and concludes on Wednesday.

"AI jitters and oil prices have kept stocks off balance," E*TRADE From Morgan Stanley Managing Director Chris Larkin observes, "but this week's lineup of high-profile earnings and economic data may have the potential to push the market out of its trading range — one way or the other."

As Larkin notes, the Fed will probably hold interest rates this week, so "traders will be focused on tech earnings, especially hyperscalers Microsoft and Amazon, to gauge the strength of the AI trade as we head into year-end."

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