U.S. stock markets saw a rebound in tech and chipmaker stocks on Monday, with the S&P 500 and Nasdaq Composite closing higher. This recovery comes after a significant selloff last week, driven by concerns over rapid growth in the chip sector and strong jobs data.
The S&P 500 technology sector and the Philadelphia SE Semiconductor Index both advanced, recovering from Friday's losses that erased $1 trillion in market value for U.S.-listed chipmakers. Intel shares surged following reports that Alphabet's Google ordered over 3 million tensor processing units for 2028.
Apple shares eased despite the company unveiling AI upgrades to Siri at its Worldwide Developers Conference. Investors appeared to adopt a 'sell-on-the-news' approach, reflecting perceptions that Apple had lagged in AI offerings.
“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
Marvell Technology saw gains as it prepared to join the S&P 500 on June 22, while Eli Lilly's stock rose after positive trial results for its obesity drug, retatrutide.
The Dow Jones Industrial Average fell 75.61 points, or 0.15%, to 50,791.17, while the S&P 500 gained 22.07 points, or 0.30%, to 7,405.81, and the Nasdaq Composite rose 222.13 points, or 0.86%, to 25,931.56.
“Perception has been for quite some time that Apple had been behind the curve as far as their AI offerings.”
Bruce Zaro, managing director at Granite Wealth Management
Background
Last week's selloff was triggered by underwhelming results from chipmaker Broadcom and unexpectedly strong May jobs data, which raised concerns about interest rate hikes.
Looking ahead, market participants will be closely monitoring the tech sector's performance and any potential interest rate changes, as these factors could influence future stock market trends.
