It didn't take long for US equities to seek out a bit of a breather, with the bounce yesterday looking fairly decent after tech stocks were trounced in the week before. The Nasdaq climbed by 1.1% on Monday, recovering some ground after last week's heavy selloff, while the S&P 500 added 0.4%.Sure, it's a decent start to the week. However, let's not forget how poorly things played out last week for tech stocks even as Treasury yields fell. That definitely left investors questioning whether the struggling market breadth and momentum is finally catching up or whether the enormous spending behind the AI boom is beginning to fail to justify lofty valuations.In any case, I would argue that the bond market will still have a big say in how all of this plays out.10-year Treasury yields are still keeping above 5% and nudged a little higher overnight to 5.12%. That is hardly a comfortable backdrop for tech stocks as the "higher for longer" environment means investors will likely have to get used to elevated interest rates sticking around. In turn, that will make future earnings less valuable today while raising financing costs.And even if Treasury yields were to retreat a little as we saw last week, borrowing costs across the economy are still painfully high. That makes it harder to justify aggressive spending, particularly for companies relying heavily on debt.As such, don't discount the potential impact from the bond market in trading this week even though things have been a bit quieter since the second half of last week. It will not take much to stoke the flames and reignite the jitters among broader markets.Until the bond market settles down, I'd be careful about taking this little rebound for the start of another sustained rally in AI stocks.Besides that, do keep a watchful eye on key tech earnings this week. In particular, I'd be watching Meta but not just for the earnings numbers and financial results. What I'll be keeping a close eye on is whether all that AI spending is starting to deliver meaningful returns. This article was written by Justin Low at investinglive.com.