Updated 2 min read
US stocks turned swiftly into the green on Monday morning, with tech stocks leading a broad bounce back from Friday’s bruising session. Meanwhile, strikes between Iran and Israel put pressure on a fragile ceasefire in the Middle East, and investors continued to reprice rate-hike bets and assess the artificial intelligence trade.
The Dow Jones Industrial Average (^DJI) moved up 0.3%. The benchmark S&P 500 (^GSPC) rose roughly 0.6% as the tech-exposed Nasdaq Composite (^IXIC) jumped 0.9% to lead gains.
Markets start the week on strong footing even after the Nasdaq Composite dropped 4% on Friday and the S&P 500 snapped its nine-week winning streak. A strong rotation out of high-flying semiconductor stocks and into more defensive areas of the market came on the heels of a blowout May jobs report that strengthened the case for the Federal Reserve to raise interest rates later this year.
The Nasdaq stepped into a rebound on Monday as Nvidia (NVDA) CEO Jensen Huang and others suggested the tech rout could be an opportunity to buy into the AI trade. Chip stocks gained at the opening bell, with Micron (MU) up 9% and Nvidia adding 2%.
Elsewhere, oil prices flared after Iran fired missiles at Israel for the first time since April, and Israel struck back despite President Trump’s calls for both sides to stop fighting. Brent futures (BZ=F) climbed as much 4% to almost $98 a barrel before cooling off, while West Texas Intermediate futures (CL=F) neared $95 a barrel amid revived concerns that a US ceasefire with Iran could fall apart to return open conflict in the Middle East.
Investors will get a better sense of whether higher oil prices are starting to bleed into core prices on Wednesday with the release of the latest monthly Consumer Price Index. The Fed’s focus will be squarely on inflation after a batch of jobs data last week showed the labor market remains stable.
Other key events to watch this week include Oracle (ORCL) earnings on Wednesday and the likely SpaceX (SPCX) IPO on Friday, which is expected to be the largest public offering on record.
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Intel stock surges on reports of Google purchase order for 3 million AI chips
Intel (INTC) stock rallied by more than 11% after The Information reported that Google (GOOG) had asked Intel to manufacture 3 million of its in-house Tensor Processing Unit (TPU) chips.
The boon for Intel comes as Taiwan Semiconductor Manufacturing Company (TSM), the global leader for chip manufacturing, has been struggling to keep up with chip demand.
The demand has created openings for rivals like Intel, which are seeking orders from companies such as Google. Google is expected to produce more than 6 million TPUs through 2027 and 2028, according to Morgan Stanley, in a signal of potential business for Intel.
Nvidia (NVDA), the global chip leader, hasn’t yet placed orders with Intel but has been testing whether Intel’s technology could be used to manufacture its next series of GPUs, The Information reported. Nvidia is Taiwan Semiconductor’s largest customer, according to statements from CEO Jensen Huang.
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Why the strength of the recent rally may not amount to a stock market mania
The stock market has been on a tear, leading many investors to wonder if it’s all just one artificial intelligence-fueled bubble waiting to pop.
But there are reasons to think the stock market hasn’t yet hit the extremes of previous bubbles.
Yahoo Finance’s Brian Sozzi reports:
The run-up in the market in recent months has been breathtaking to say the very least. Prior to Friday’s steep pullback, the S&P 500 (^GSPC) had surged by 15% during the prior two months, a 99th percentile return relative to history dating back to 1980, according to new research from Goldman Sachs analyst Ben Snider.
“The strength of the recent rally alongside persistently strong AI momentum has generated a wave of client concern that stocks have moved ‘too far, too fast’ and are likely reflecting an unsustainable degree of investor euphoria,” Snider wrote.
Snider offered three charts that suggest that while the trading activity is feverish, it isn’t a mania destined to end badly for the bulls.
First, the number of initial public offerings (IPOs) remains below average and well below prior cycle peaks.
No mania seen in IPO activity. · Goldman Sachs Read more about the other two charts here, or read about why the market hasn’t yet reached peak FOMO.
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US stock market opens higher
The US stock market began trading on mixed footing on Monday after renewed military action in the Middle East put upward pressure on oil prices, and a sell-off in the semiconductor industry spooked the broader AI tech trade.
The Dow Jones Industrial Average (^DJI) gained 0.7% after turning red in premarket trading. The S&P 500 (^GSPC) rose roughly 0.9% as the tech-exposed Nasdaq Composite (^IXIC) jumped as high as 1.6% before pulling back to a gain of 1.2%.
Investors will be looking for the market’s strong start to herald a recovery on Monday from a sharp drop on Friday. An unexpectedly strong May jobs report saw markets move to fully price in a rate hike by the end of the year, sending equities tumbling to end last week.
In the tech world, a drop of more than 8% overnight on the Korean Kospi Composite Index (^KS11), which is heavily indexed toward the semiconductor industry, followed a sell-off in the US tech space on Friday.
Oil prices pulled back to gains of a bit over 1%, respectively, on both international Brent crude (BZ=F) and US WTI crude (CL=F) after a flare-up in conflict between Israel and Iran — the first direct exchange of blows since early April — threatened already delicate ceasefire negotiations. Brent and WTI traded around $95 and $92 per barrel, respectively.
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IMF director: World economy needs to build resilience to global shocks
International Monetary Fund managing director Kristalina Georgieva said the world economy needs to build resiliency to a new reality of rolling global shocks.
“I am worried that we are not completely internalizing yet that this is how the world is going to be,” Georgieva told Bloomberg. “We are not going to get to a place where shocks are gone.”
The International Monetary Fund’s mission is to promote global financial stability by lending money to countries facing economic crises, monitoring the world economy, and advising governments on economic policy. The fund maintains a funding line of roughly $1 trillion.
In an interview with Bloomberg, Georgieva cited the development of AI — and the way major governments handle its ascension — as a key risk facing the market, pointing to the “backlash” against the globalization movement of the post-war era.
“We collectively, including the fund, did not appreciate the backlash against globalization that came from the fact that, yes, the world economy is doing better as a whole, but many communities were hollowed out because their jobs disappeared and there was not enough attention to them,” Georgieva said.
The IMF will update its guidance for global growth in July after downgrading its growth projections in April on the back of the Iran war.
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Oil pares gains as Iran says it has ended latest wave of strike on Israel
Oil prices crept back up on Monday morning after an exchange of fire between Israel and Iran on Sunday and Monday threatened to derail ongoing peace negotiations as the war hit its 100th day.
Iran launched a new wave of strikes against Israel in retaliation for Israeli strikes on Lebanon, and Israel also struck back at Iran. On Monday, Iran said it ended its latest volley of strikes as President Trump urged both sides to stop shooting after the biggest eruption in hostility in the region since April.
Brent crude (BZ=F), the international benchmark, rose 1% to $94 a barrel. West Texas Intermediate (CL=F), the US benchmark, rose 1% to $91 a barrel. Oil prices pared some steeper gains after President Trump spoke on the phone with Israeli Prime Minister Benjamin Netanyahu and after Trump said, “Israel and Iran must immediately stop ‘shooting.’“
The president stated that efforts at diplomacy between Israel and Iran are “proceeding” and that peace talks “should move quickly,” even as the two sides appear far apart on key wedge issues.
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Marvell, Flex stocks jump on S&P 500 inclusion
Marvell (MRVL) and Flex (FLEX) stocks rose on Monday morning after S&P Dow Jones Indices announced the two companies will join the S&P 500 index (^GSPC), replacing The Campbell’s Company (CPB) and Pool Corp (POOL).
Shares of Marvell, a custom chip provider, jumped nearly 9% on the announcement, while Flex stock gained 4%. S&P 500 inclusion usually leads to a short-term bump in share prices, as it attracts more passive investors.
Although Marvell shares pulled back sharply on Friday, falling 16%, the stock has been on an incredible run this year. It’s up 210% since the start of 2026, and Marvell’s market cap has risen to $230 billion.
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WWDC preview: Apple gets a second shot at its AI rollout
Apple (AAPL) will host its annual Worldwide Developers Conference (WWDC) on Monday at its Cupertino, Calif., headquarters.
Yahoo Finance’s Daniel Howley takes a look at what investors can expect:
The event, Tim Cook’s last as CEO of the company, will serve as a kind of reboot of Apple’s AI strategy, which has lagged behind competing firms’ efforts to date.
The biggest news out of the show, which runs through June 12, will likely be the debut of Apple’s long-delayed, AI-infused version of Siri.
The digital assistant landed on iPhones with a good deal of fanfare in 2011 but has largely languished over the years. Siri’s deficiencies have become even clearer with the advent of generative AI models, chatbots, and, more recently, AI agents.
Apple initially announced a revamped AI version of its helper in 2024, but ran into issues getting it out the door.
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Nvidia’s Huang says the sell-off in tech stocks is a buying opportunity
Nvidia (NVDA) CEO Jensen Huang called a global tech stocks sell-off that began last week a buying opportunity, saying the buildout of artificial intelligence has just begun.
From Bloomberg:
South Korea’s benchmark Kospi (^KS11) Index tumbled on Monday after investors pulled back from AI bets that have fueled a global bull market in equities. US tech shares tumbled Friday on concerns over a possible interest-rate hike.
Huang, responding to questions during a trip to Seoul about how that selloff should be perceived, said the industry was still in the early stages of constructing infrastructure that will serve as the foundation of an AI-fueled future.
On Monday, Nvidia and SK Hynix (000660.KS) said they struck a multi-year agreement to design future generations of memory chips for AI, a win for a South Korean leader vying with Samsung Electronics Co. (005930.KS) in the red-hot arena. Stocks including SK Hynix pared losses after South Korean President Lee Jae Myung said Monday he believed the domestic market remained undervalued.
“We’re at the beginning of it, and whatever happened to the stock market, you should be very happy because now you can buy at a discount,” Huang said. “Everybody should be very excited,” he told reporters after meeting with SK Group Chairman Chey Tae-won in Seoul.
