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US stocks moved higher on Monday as chipmakers recovered from Friday’s sharp selloff. NVIDIA, Micron Technology, Intel and Broadcom led gains across the technology sector.
Investors also assessed developments in the Middle East after Iran said it had ended military operations against Israel. Oil prices remained higher, although they eased from earlier peaks as concerns about a wider conflict weakened.
The S&P 500 rose about 0.7% in early trading, while the NASDAQ Composite gained more than 1%. The Dow Jones Industrial Average added around 150 points as buyers returned to major technology stocks.
NVIDIA shares climbed 2%, while Broadcom gained over 3%. Micron Technology jumped almost 10% after falling 13% on Friday. Intel also advanced after a report said Alphabet had selected the company to produce three million in-house chips.
The Philadelphia Semiconductor Index gained more than 4%, reversing part of Friday’s steep decline. That selloff erased about $1 trillion from the value of US-listed chipmakers as traders reduced exposure following strong gains earlier this year.
Marvell Technology also rose nearly 15% after securing a place in the S&P 500. Flex also moved higher after joining the benchmark index. Both companies will replace existing members before trading begins on June 22.
Energy stocks advanced as oil prices stayed above Friday’s levels. Chevron and Exxon Mobil each gained more than 1%, while the broader S&P 500 energy sector rose as crude markets reacted to renewed military activity.
Iran said its first wave of attacks against Israel since the April ceasefire had ended. Reports also said Israel stopped strikes on Iran following a request from US President Donald Trump.
West Texas Intermediate crude traded near $91 per barrel after giving up part of an earlier gain above 5%. Travel stocks remained under pressure, with United Airlines and Delta Air Lines edging lower as fuel costs stayed elevated.
Iran warned that military action could resume if Israel continued attacks in Lebanon. That statement maintained uncertainty around the ceasefire despite reduced fears of immediate escalation.
Markets now turn to the May consumer price index report due Wednesday. Traders expect the figures to show stronger price pressure as higher energy costs filter through the economy.
Strong employment data for May already increased expectations that the Federal Reserve could raise interest rates later this year. Futures pricing showed a 42% chance of a quarter-point increase in December.
Fed officials have entered their blackout period before the June 17 policy decision. As a result, the inflation report could shape rate expectations without fresh comments from policymakers.
Jimmy Lee of The Wealth Consulting Group said, “If today’s rebound holds, this could be another good ‘buy-the-dip’ moment for investors.” Still, he warned that “the inflation prints are crucial to keep traders from getting skittish about potential rate hikes.”
Several Wall Street banks continue to forecast further gains for US stocks in 2026. Morgan Stanley strategist Mike Wilson maintained a year-end S&P 500 target of 8,000.
Citigroup strategists raised their target to 8,100 from 7,700, citing stronger earnings forecasts and continued artificial intelligence investment. The index remained about 2% below its record closing high following Friday’s decline.
Nevertheless, Callie Cox of Ritholtz Wealth Management questioned whether recent momentum could continue, given that inflation and interest rates are still elevated. She said, “The stock market may be becoming a victim of its own success.”
Wall Street’s fear gauge, the VIX, fell below 19 after rising above 20 on Friday. Investors will monitor inflation figures, oil prices and the planned SpaceX market debut for the next direction in US equities.
Also Read: US Stock Market Today: Dow Hits Fresh Record High as Broadcom-Led Chip Selloff Drags NASDAQ Lower
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