US stocks rose on Monday, led by gains in the Nasdaq and chipmakers as investors sought bargains after Friday’s sharp selloff.
Investors were also relieved by signs of cooling tensions in the Middle East. Iran and Israel said they had halted attacks on each other after an appeal from US President Donald Trump that they immediately “stop shooting.”
The attacks over 24 hours were the most confrontational between Iran and Israel since an April ceasefire in the war.
S&P 500 technology led gains among sectors, increasing 1.8 per cent, while the Philadelphia SE Semiconductor Index.SOX advanced 6.2 per cent, rebounding from Friday’s losses that wiped out $1 trillion (€87 billion) in market value for US-listed chipmakers.
Intel INTC.O shares jumped 12 per cent after news website The Information reported that Alphabet’s Google had placed an order to manufacture more than 3 million tensor processing units in 2028.
“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, a family investment office in New Vernon, New Jersey. “What normally happens after that is you get analysts coming in and reiterating buys.”
He said: “This market has been priced for quite a while for perfection, and these are certainly imperfect times. In that environment, you are going to see some back-and-forth, and some fear of prices having gone too far.”
Stocks sold off late last week after hitting a series of record highs recently. Underwhelming results from chipmaker Broadcom last week had raised concerns that the chip sector was growing too fast, while much stronger-than-expected jobs data for May contributed to Friday’s rout, as traders priced in interest rate increases this year. Broadcom shares were up 2.3 per cent on Monday.
The Dow Jones Industrial Average.DJI rose 6.62 points, or 0.01 per cent, to 50,871.37, the S&P 500 SPX rose 47.67 points, or 0.63 per cent, to 7,430.49, and the Nasdaq Composite .IXIC rose 329.47 points, or 1.27 per cent, to 26,036.94.
Apple chief executive Tim Cook launched the company’s annual Worldwide Developers Conference by saying the day’s announcements will center on Apple Intelligence and Siri. Apple shares were last down 1.4 per cent.
Among other movers, Marvell Technology jumped almost 15 per cent with the chipmaker set to join the benchmark S&P 500 before the start of trading on June 22nd,
World
Gwynne Shotwell, the ‘glue’ executing Musk’s lofty SpaceX ambitions
Looking ahead this week, SpaceX’s public offering on Friday could also prove a major test for US stock markets, with investors wary of possible overexuberance.
Eli Lilly advanced 2.7 per cent after the drugmaker’s trial results showed its next-generation obesity drug, retatrutide, curbed sleep apnea severity in addition to boosting weight loss and helping knee pain.
On the Nasdaq, 2,765 stocks rose and 1,908 fell as advancing issues outnumbered decliners by about a 1.45-to-1 ratio. There were 127 new highs and 163 new lows.
On the New York Stock Exchange, advancing issues outnumbered declining ones by a 1.3-to-1 ratio. There were 105 new highs and 126 new lows.
