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U.S. equity markets moved higher Monday as semiconductor stocks recovered sharply from a brutal prior week, and easing tensions between Iran and Israel helped pull oil prices back from early session highs. The rebound offered some relief to investors rattled by a confluence of geopolitical and monetary policy concerns that had weighed heavily on technology shares.
Why It Matters
For investors and businesses across Idaho and the broader Mountain West, the health of technology and semiconductor stocks carries significant weight in retirement portfolios and broader economic confidence. Monday’s session offered a partial recovery after roughly $1 trillion in market value was erased from U.S.-listed chipmakers in a single Friday session — a reminder of how quickly sentiment can shift in today’s markets.
The bounce also came on the heels of a stronger-than-expected May jobs report that rattled investors by raising the prospect of tighter Federal Reserve monetary policy later this year.
What Happened
All three major indexes climbed in early trading Monday. The Dow Jones Industrial Average added 146 points, or 0.29%, to 51,015. The S&P 500 gained 50 points, or 0.68%, to 7,434, while the Nasdaq Composite rose 280 points, or 1.09%, to 25,989, as of early morning trading.
The catalyst behind much of the day’s optimism was a de-escalation in the Middle East. Iran’s military announced the conclusion of its first wave of attacks on Israel, and Israel halted its own strikes at the request of President Donald Trump. The development walked back fears of a prolonged regional conflict that had pushed oil prices up more than 5% earlier in the session. Crude prices ultimately settled to gains of less than 2%, and energy sector shares added 1.3%.
Chipmakers led the broad recovery. Intel surged 8.5% after Alphabet tapped the company to manufacture 3 million in-house chips. Reports that Nvidia was also evaluating Intel technology added further momentum. Nvidia shares rose 1.7%, Micron Technology jumped 8.7%, and Broadcom added 2.8%.
The Philadelphia SE Semiconductor index advanced 4.6%, while the S&P 500’s broader technology sector index gained 1.9%.
Marvell Technology stood out with a nearly 10% jump, driven in part by the announcement that the company will join the S&P 500 ahead of trading on June 22. Manufacturing solutions company Flex also secured a spot in the index.
By the Numbers
- $1 trillion — approximate market value wiped from U.S. chipmakers in Friday’s selloff
- +4.6% — Philadelphia SE Semiconductor index gain on Monday
- +8.7% — Micron Technology share increase
- +8.5% — Intel share increase following Alphabet chip manufacturing deal
- 42% — current market probability of a Federal Reserve rate increase by December
- 1.97-to-1 — ratio of advancing to declining issues on the Nasdaq
Broader Context
The prior week’s selloff had multiple causes. Disappointing quarterly results from Broadcom rattled the sector, and the strong May jobs report amplified concern that the Federal Reserve would be forced to keep interest rates elevated longer than markets had hoped. Higher rates tend to compress valuations on growth and technology stocks, making rate expectations a persistent overhang for chipmakers and AI-related companies.
The race to capitalize on AI investment has kept semiconductor names in the spotlight throughout 2026. Citigroup reportedly set a year-end S&P 500 target above the 8,000 mark, reflecting continued optimism about the broader market even amid near-term turbulence.
In healthcare, Eli Lilly advanced 2.3% after new data showed its obesity drug retatrutide reduced the severity of sleep apnea, broadening the potential market for the treatment.
What’s Next
Markets will continue monitoring developments in the Middle East, with any renewed escalation between Iran and Israel likely to move oil prices and weigh on risk sentiment. Federal Reserve policy guidance and upcoming inflation data will also factor heavily into whether Monday’s rebound holds. The probability of a December rate hike sits at 42%, keeping monetary policy uncertainty front and center for investors in the weeks ahead.
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