US stocks rebound as AI chipmakers lift Nasdaq

US stocks recovered on Monday as investors returned to technology and semiconductor shares linked to artificial intelligence, lifting the Nasdaq Composite by more than 1.5% and the S&P 500 by about 1% after Friday’s sharp selloff. The rebound came despite elevated crude prices following renewed Iran Israel tensions, with traders watching this week’s US inflation data and key corporate events including Oracle earnings and the anticipated SpaceX IPO.

Market overview

Index	8 June 2026 Close	Move & % Change	Comments
Dow Jones Industrial Average	above 51,000 (approx.)	about +0.3% to +0.4%	Recovered part of Friday losses; lagged tech-heavy peers.
S&P 500	not specified	about +0.7% to nearly +1%	Bounced after worst daily fall since October; AI stocks led.
Nasdaq Composite	not specified	about +1.1% to over +1.6%	Outperformed as AI-linked tech and chipmakers rebounded.

Note: figures are approximate; final exchange data not available at time of publication.

• Friday session saw the S&P 500 snap a nine-week winning streak.
• Nasdaq had tumbled about 4% on Friday, pressuring high-growth tech.
• Stronger-than-expected US May jobs data reinforced expectations of higher-for-longer Fed rates.
• Monday’s gains followed a cautious open as traders reassessed the prior selloff.
• Treasury yields eased, with the 10-year note near 4.51%, down from 4.55%.

Key movers

Top gainers

Stock	Sector	Notable Factor
Intel	Semiconductors	Jumped over 11% on reports of a large Google AI chip manufacturing order.
Micron Technology	Semiconductors	Gained about 8% to 9% after a steep Friday drop; AI memory demand optimism.
Marvell Technology	Semiconductors	Rose about 8.8% to 13.6% after decision to join the S&P 500 index.
American Battery Technology (ABAT)	Materials / Battery	Climbed 24.92% to $3.88; no specific driver cited.
Laser Photonics (LASE)	Industrial / Photonics	Advanced 23.55% to $3.83; no specific driver cited.

Note: figures are approximate; final exchange data not available at time of publication.

• Intel was linked to manufacturing about 3 million Google Tensor Processing Unit chips.
• Google is targeting production of over 6 million TPUs in 2027 and 2028.
• Reports indicated Nvidia has tested Intel’s manufacturing for future GPUs, with no confirmed orders.
• Micron shares have more than tripled in 2026 despite recent volatility.
• A widely tracked semiconductor index had risen nearly 85% in 2026 through last Thursday.

Notable laggards

Stock	Sector	Notable Factor
Travelers	Insurance / Financials	Fell 1.28% as investors rotated into high-growth tech.
Sherwin-Williams	Materials	Dropped 1.29%; part of weaker Dow components.
Salesforce	Software	Declined 1.30% amid sector rotation.
Microsoft	Technology	Lost 1.09% despite broader tech rebound.
Visa	Payments / Financials	Eased 0.87% as cyclicals underperformed chipmakers.

• Several Dow components underperformed despite the broader index gain.
• Investors shifted exposure from defensives and financials into AI-linked semiconductors.

Sectoral action

Sector / Index	Direction (approx.)	Key Drivers
Semiconductors / AI-linked tech	up strongly, mid to high single digits	Recovery after AI-led selloff; renewed confidence in AI demand.
Energy	up	Higher crude prices supported energy shares despite intraday oil pullback.
Financials and industrials	mixed to down	Rotation into growth and chipmakers; some Dow names weakened.

Note: figures are approximate; final exchange data not available at time of publication.

• The Philadelphia Semiconductor Index jumped more than 6% in one session.
• AI-related stocks had driven much of Wall Street’s 2026 rally before the recent correction.
• Market participants debated whether Friday’s drop signalled a broader correction or a pause.
• “Markets rarely move in a straight line at the pace seen since the March lows”

– “In our view, a correction was inevitable and ultimately healthy if this bull market is going to extend into year-end.”

– “” — Michael Wilson, Strategist, Morgan Stanley.

Technical and macro outlook

• The recent two-month S&P 500 gain was about 15%, a historically strong move.
• Analysts highlighted that such returns are rare and can trigger bubble concerns.
• IPO volumes remained below past cycle peaks, limiting signs of late-stage euphoria.
• Retail speculation was noted as below 2021 meme-stock intensity.
• The AI trade was described as supported by real capital expenditure and contracts.
• The Federal Reserve has signalled it needs sustained inflation progress before rate cuts.
• Wednesday’s US Consumer Price Index release is a key risk event for equities.
• A hotter-than-expected CPI print could challenge Monday’s risk-on sentiment.

Global cues and commodities

Market / Asset	Movement	Notes
Brent crude	intraday near +4%, then about +1.2%	Briefly topped $98 per barrel before easing to around $94.25.
WTI crude	up, intraday near +4%	Approached $95 per barrel before paring gains.
Japan Nikkei 225	down 3.8%	Fell after Q1 growth was revised to 1.8% from 2.1% annualised.
Shanghai Composite	down 1.7%	Chinese equities stayed under pressure.
Hang Seng Index	down 1.2%	Hong Kong shares tracked broader Asian weakness.

Note: figures are approximate; final exchange data not available at time of publication.

• Iran launched missile strikes at Israel over the weekend, prompting Israeli retaliation.
• Tehran later signalled a halt to offensive operations, easing some immediate escalation fears.
• Higher oil prices have added to global inflation concerns and lifted bond yields recently.
• US Treasury yields dipped on Monday, supporting risk assets.
• European markets traded lower, reflecting caution despite the US rebound.

Events to watch

• US CPI data on Wednesday will shape expectations for future Fed policy moves.
• Oracle is scheduled to report quarterly earnings later this week.
• The anticipated SpaceX IPO, expected this week, could be among the largest on record.
• Investor appetite for high-growth listings will be tested amid rate and valuation concerns.

FAQ

Q: Why did US stocks rebound after Friday’s selloff?

• AI-linked technology and semiconductor stocks recovered sharply, lifting the Nasdaq and S&P 500, while easing Treasury yields and stabilising oil prices supported broader risk sentiment.

Q: How did oil prices affect US markets on Monday?

• Brent and WTI briefly spiked on renewed Iran Israel tensions, then eased from overnight highs; elevated crude supported energy shares but kept inflation and rate risks in focus.

Q: Which stocks led the US market rally?

• Intel, Micron Technology, Marvell Technology, American Battery Technology, and Laser Photonics were among the strongest gainers, driven mainly by AI-related demand and index inclusion news.

Frequently Asked Questions

Why did US stocks rebound after Friday’s selloff?

AI-focused technology and semiconductor stocks rebounded sharply, easing concerns that Friday’s decline marked the start of a deeper correction, while slightly lower Treasury yields and stabilising oil prices also supported risk appetite.

How did oil price moves influence US markets?

Brent and WTI crude briefly spiked on Iran Israel tensions, then eased from overnight highs; the still-elevated levels supported energy stocks but kept inflation and Federal Reserve policy risks in focus.

Which sectors and stocks led Monday’s US market gains?

Semiconductors and AI-linked technology led, with Intel, Micron Technology and Marvell Technology posting strong gains, alongside smaller names like American Battery Technology and Laser Photonics.