U.S. equity markets delivered a mixed performance on Monday, with the Dow Jones Industrial Average slipping 80.77 points, or 0.16%, to close at 50,786.01, while the Nasdaq Composite led gains, advancing 0.86% to 25,929.66. The S&P 500 added 21.99 points, or 0.30%, finishing at 7,405.73. The divergence reflected a sharp rebound in semiconductor stocks and cautious optimism over geopolitical developments.
Chip Stocks Lead Recovery After Brutal Selloff
Semiconductor shares staged a strong comeback after Friday's rout, when the Nasdaq plunged 4.2% and erased roughly $1 trillion in market value from U.S.-listed chip companies. The Philadelphia Semiconductor Index rose alongside the broader tech sector as investors snapped up bargains.
Micron Technology (MU) surged approximately 10%, recovering from a 13% drop on Friday. Nvidia and Broadcom also traded higher, while Marvell Technology gained after being selected to join the S&P 500 effective June 22. Intel shares moved up following a report that Alphabet's Google had placed an order for over 3 million tensor processing units to be manufactured in 2028.
The prior weakness in chips was triggered by underwhelming results from Broadcom and stronger-than-expected U.S. jobs data, which reignited fears that interest rates could stay elevated for longer. Monday's rebound suggests investors are rotating back into AI-adjacent compute names, viewing the selloff as overdone.
Ceasefire Hopes Support Broader Market
Geopolitical tensions in the Middle East eased after Iran and Israel indicated they had halted attacks following an appeal from U.S. President Donald Trump. The pause followed a 24-hour exchange of strikes, the most direct confrontation since an April ceasefire.
Oil prices initially spiked after Israel conducted a large-scale strike on Iranian strategic defense systems, but West Texas Intermediate crude pared gains to trade about 1% higher near $91 per barrel after Iran's foreign ministry said military operations against Israel had ended. The easing of tensions helped improve overall investor sentiment.
For more on how geopolitical events have influenced markets, see our earlier coverage: Dow Futures Surge 277 Points as Ceasefire Hopes Fuel Semiconductor Rebound.
Key Events on the Horizon
Investors are now turning their attention to several major catalysts later this week. The release of U.S. inflation data will be closely watched for clues on the Federal Reserve's rate path. Additionally, the highly anticipated public debut of SpaceX is expected to be one of the largest initial public offerings in Wall Street history, serving as a key test of investor enthusiasm for AI-related investments.
Apple shares slipped late in the session despite unveiling AI upgrades to Siri at its Worldwide Developers Conference, as some investors adopted a sell-on-the-news approach. Eli Lilly advanced after releasing clinical trial data showing its next-generation obesity treatment, retatrutide, reduced sleep apnea severity and delivered significant weight loss and knee pain improvement.
For a broader perspective on recent market movements, check out: Dow Surges 384 Points as Semiconductor Rebound Powers Wall Street Ahead of Big Tech Earnings and Dow Adds 230 Points as Chip Stocks Rally Ahead of Big Tech Earnings Reports.
This article is for informational purposes only and does not constitute financial advice.
