U.S. stocks saw a notable rise on Monday, driven by gains in the Nasdaq and chipmaker sectors as investors sought bargains following a sharp selloff last Friday. The easing of tensions in the Middle East, with Iran and Israel halting attacks after U.S. intervention, also contributed to market optimism.
The S&P 500 technology sector led the gains, increasing by 1.8%, while the Philadelphia SE Semiconductor Index surged by 6.2%, recovering from last week's losses that erased $1 trillion in market value for U.S.-listed chipmakers. Intel shares soared 12% following reports that Google's Alphabet had ordered over 3 million tensor processing units for 2028. Meanwhile, Broadcom shares rose 2.3% after last week's disappointing results had raised concerns about the chip sector's rapid growth.
The Dow Jones Industrial Average inched up by 0.01% to 50,871.37, the S&P 500 climbed 0.63% to 7,430.49, and the Nasdaq Composite increased by 1.27% to 26,036.94. Marvell Technology's shares jumped nearly 15% as the chipmaker is set to join the S&P 500 on June 22.
“Today looks like a day where investors are doing a little bit of bargain hunting off the big tech selloff.”
Rick Meckler, partner at Cherry Lane Investments
Apple's CEO Tim Cook opened the company's annual Worldwide Developers Conference, focusing on Apple Intelligence and Siri, though Apple shares dipped by 1.4%. Eli Lilly advanced 2.7% after its trial results showed promising outcomes for its obesity drug, retatrutide.
"Today looks like a day where investors are doing a little bit of bargain hunting off the big tech selloff," said Rick Meckler, partner at Cherry Lane Investments. "This market has been priced for quite a while for perfection, and these are certainly imperfect times."
“This market has been priced for quite a while for perfection, and these are certainly imperfect times.”
Rick Meckler, partner at Cherry Lane Investments
Background
The market's rebound comes after a volatile period, with stocks selling off late last week due to underwhelming results from Broadcom and stronger-than-expected May jobs data, which fueled concerns of interest rate hikes. The upcoming SpaceX IPO on Friday could further test market sentiment.
Investors should keep an eye on upcoming developments, including SpaceX's IPO, which may influence market dynamics. The ongoing balance between market optimism and economic uncertainties will continue to shape investor strategies.
