Key facts
- U.S. stocks closed mostly higher on Monday, led by gains in the Nasdaq and chipmakers.
- The S&P 500 technology sector and Philadelphia SE Semiconductor Index advanced, rebounding from Friday's losses.
- Intel shares jumped on news of a large order from Alphabet's Google for tensor processing units.
- Apple shares eased despite unveiling AI upgrades to Siri.
- The Dow Jones Industrial Average ended lower.
- Marvell Technology advanced as it is set to join the S&P 500 index.
U.S. stocks closed mostly higher on Monday, with the Nasdaq and chipmakers leading the advance as investors sought bargains following a significant selloff. Sentiment was also buoyed by statements from Iran and Israel indicating a halt to their attacks on each other. The MSCI global equities index, however, saw a slight decline.
Wall Street's main indexes staged a comeback after Friday's selloff, which had been driven by concerns over the chip sector's rapid growth and a stronger-than-expected May jobs report that fueled fears of potential Federal Reserve interest rate hikes. The S&P 500 technology sector and the Philadelphia SE Semiconductor Index advanced, recovering from Friday's losses that erased $1 trillion in market value for U.S.-listed chipmakers. Intel shares experienced a notable jump after reports surfaced that Alphabet's Google had placed an order for over 3 million tensor processing units for manufacturing 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. He added that the market has been priced for perfection for a while, leading to volatility in uncertain times. Bruce Zaro, managing director at Granite Wealth Management, noted that the market is still grappling with inflation and geopolitical uncertainty.
Apple announced its AI-driven Siri revamp at its annual Worldwide Developers Conference, but its shares eased late in the session. Marvell Technology advanced as it is set to join the S&P 500 index on June 22. The Dow Jones Industrial Average ended lower, falling 75.61 points, or 0.15%, to 50,791.17. The S&P 500 gained 22.07 points, or 0.30%, to close at 7,405.81. The Nasdaq Composite rose 222.13 points, or 0.86%, to 25,931.56.
In energy markets, U.S. crude futures settled up 0.84% at $91.30 a barrel, and Brent crude ended the session at $94.25 per barrel, up 1.25%, after earlier trading higher. The dollar retreated from its highest level in nearly two months as the halt of Iranian and Israeli attacks reduced safe haven demand. Bitcoin gained 2.23% to $63,248.36. In government bonds, the yield on benchmark U.S. 10-year notes rose to 4.564%.