Chipmakers helped lift the Nasdaq and S&P 500 on Monday as investors moved back into technology shares following Friday’s sharp decline and welcomed signs of a pause in Iran-Israel attacks.
By yourNEWS Media Newsroom
U.S. stocks closed mostly higher Monday, with the Nasdaq and S&P 500 gaining ground as chip stocks rebounded from a steep selloff and investors reacted to signs that Iran and Israel had paused direct attacks.
The rally followed President Donald Trump’s appeal for both countries to immediately “stop shooting” after the most direct confrontation between Iran and Israel since an April ceasefire in the war. The pause helped ease some market concerns tied to geopolitical risk, though major indexes finished below their intraday highs.
The Dow Jones Industrial Average ended lower, while the S&P 500 and Nasdaq rose. Apple shares weakened late in the session despite the company announcing artificial intelligence upgrades to Siri during its annual Worldwide Developers Conference in Cupertino, California.
The S&P 500 technology sector and the Philadelphia SE Semiconductor Index advanced after Friday’s losses erased about $1 trillion in market value from U.S.-listed chipmakers.
Intel shares also gained after 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.”
Meckler said the broader market remains sensitive because valuations have been high and investors have had little tolerance for disappointment.
“This market has been priced for quite a while for perfection, and these are certainly imperfect times,” he said. “In that environment, you are going to see some back-and-forth, and some fear of prices having gone too far.”
Stocks had fallen sharply late last week after recently reaching a series of record highs. Broadcom’s underwhelming results raised concerns about whether the chip sector had advanced too quickly, while stronger-than-expected May jobs data contributed to Friday’s decline as traders increased expectations for possible interest rate hikes this year.
According to preliminary data, the S&P 500 rose 22.07 points, or 0.30%, to close at 7,405.81. The Nasdaq Composite gained 222.13 points, or 0.86%, to finish at 25,931.56. The Dow Jones Industrial Average fell 75.61 points, or 0.15%, to 50,791.17.
Apple’s late-session weakness came after the company unveiled updates to Siri as part of its artificial intelligence push. Bruce Zaro, managing director at Granite Wealth Management in Plymouth, Massachusetts, said the stock may have faced a “sell-on-the-news” reaction.
“Perception has been for quite some time that Apple had been behind the curve as far as their AI offerings. That’s why the stock widely underperformed many of the other big techs for some time until recently,” Zaro said.
Investors are also watching SpaceX’s initial public offering on Friday, which could test appetite for high-profile technology listings at a time when some market participants are worried about overexuberance.
Other technology gainers included Marvell Technology, which rose as the chipmaker prepared to join the benchmark S&P 500 before trading begins June 22.
Eli Lilly also advanced after trial results showed its next-generation obesity drug, retatrutide, reduced sleep apnea severity while also boosting weight loss and helping knee pain.
Monday’s trading reflected a market still willing to buy large technology and chip names after sharp declines, but also cautious about stretched valuations, interest rate uncertainty and global conflict risks.
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