Tech Drives Market
US Stocks Rise as S&P 500 and Nasdaq Gain, Boosted by Tech and Chipmakers
U.S. stocks bounced back sharply on Monday after a brutal Friday selloff. The S&P 500 climbed 0.30% to close at 7,405.73, while the Nasdaq gained 0.86% to finish at 25,929.66, according to MarketScreener. The biggest winners were chipmakers, with the Philadelphia Semiconductor Index surging 5.61% as investors hunted for bargains.
The Monday rebound came after the Nasdaq plunged roughly 4.2% on Friday, erasing nearly $1 trillion in market value from U.S.-listed chipmakers. Rick Meckler, a partner at Cherry Lane Investments, told TradingView the day's buying was simply "bargain hunting off the big tech selloff."
Chip Stocks Lead the Charge After $1 Trillion Wipeout
Intel jumped 11.19% to close near $110.18, and Micron surged 10% after dropping 13% on Friday. Marvell Technology led all gainers, climbing 14.65%, driven by its growing role in custom AI chips and data centers. Nvidia added 1.77%, helped by a new collaboration with LG Group, according to MarketScreener.
A key spark for Intel's rally was a report that Google placed a major order for over 3 million Tensor Processing Units from the company. Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, stayed upbeat, saying "business fundamentals remain strong" despite the recent turbulence. Not every stock joined the party — Apple fell 1.88% after a tepid reaction to its new AI updates.
Middle East De-Escalation Gave Markets Room to Breathe
Over the weekend, Iran and Israel exchanged direct military strikes — the first since their April ceasefire. U.S. President Donald Trump publicly called on both sides to "immediately stop shooting." By Monday afternoon, Iran signaled it was ending its current operations against Israel, which helped ease investor nerves, according to TradingView.
WTI crude oil, which had spiked to $92.10 per barrel during peak tensions, pulled back to $91.10 by the close. The cooling oil price mattered because high energy costs fuel inflation fears. With geopolitical pressure easing, traders felt more comfortable moving back into growth stocks like semiconductors.
Fed Fears and a Hot Jobs Report Started Friday's Crash
The Friday selloff began after a "blowout" May jobs report stoked fears that the Federal Reserve would raise interest rates. Higher rates hurt tech stocks more than most because these companies depend on future earnings, which are worth less when rates go up. The Nasdaq lost more than 1,100 points in a single session, its worst day since April 2025, according to MarketScreener.
The Fed's next meeting is set for June 16–17, where new likely chair Kevin Warsh is expected to remove language signaling future rate cuts. Chris Larkin of E*TRADE from Morgan Stanley warned that the market is now more sensitive to "negative surprises." All eyes now turn to Wednesday's May Consumer Price Index report. If inflation stays above 3.8%, any hope of rate cuts in 2026 could disappear.
Bulls and Bears Disagree on Whether the Rally Will Hold
Citigroup raised its S&P 500 year-end target to 8,100, calling the Friday drop a healthy "reset" in a long-term bull run driven by AI. The semiconductor sector had been on fire before the crash — AMD was up 130% and Intel up nearly 200% year-to-date, according to MarketScreener.
Skeptics are less convinced. NYU finance professor Aswath Damodaran called the concurrent SpaceX IPO — priced at $135 per share across 555.6 million shares — "too richly priced" and a "loaded bet on AI and Elon Musk." Some technical analysts warned the Monday bounce could be a "dead cat bounce" rather than the start of a true recovery. The VIX fear index dropped 12.92% to 18.73, but risks remain ahead.
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