Business Recorder

Wall St gains as chips rebound, Middle East tensions ease

Wall Street’s major indexes advanced on Monday, as chipmakers bounced back from a sharp selloff last week, while investors took comfort from signs of cooling tensions in the Middle East. Intel shares jumped 8.5%. The Information reported that Alphabet had tapped the company to make 3 million in-house chips, while Nvidia was evaluating their technology. The S&P 500 tech sector index gained 1.9%, while the Philadelphia SE Semiconductor index advanced 4.6%, rebounding from Friday’s sharp decline that wiped out $1 trillion in market value for U.S.-listed chipmakers. Shares of Nvidia and Broadcom rose 1.7% and 2.8%, respectively, while Micron Technology soared 8.7%. Expectations of tighter monetary policy and underwhelming results from Broadcom last week had raised concerns that the sector was growing too fast, prompting traders to retreat after a strong run this year. “Sometimes these moves get too far too fast and you need a bit of a pullback. And, that pullback is likely going to find investment in other sectors,” said Art Hogan, chief market strategist at B Riley Wealth. Four out of the 11 major S&P 500 indexes were in the green. Further helping the mood, Iran’s military announced that its first wave of attacks on Israel since a ceasefire in April was now over. Israel has halted strikes on Iran at the request of U.S. President Donald Trump, a senior Israeli official was cited as saying by Channel 12. Attacks between the two countries had pushed up oil prices by more than 5% earlier on Monday. Crude prices were last up less than 2%. Energy shares rose 1.3%. At 09:37 a.m. ET, the Dow Jones Industrial Average rose 146.11 points, or 0.29%, to 51,015.91, the S&P 500 gained 50.54 points, or 0.68%, to 7,434.28 and the Nasdaq Composite gained 280.09 points, or 1.09%, to 25,989.52. Much stronger-than-expected jobs data for May also contributed to Friday’s rout, as traders priced in interest rate increases this year. Pricing in interest rate futures implies a 42% chance that the Federal Reserve will hike rates by 25 basis points in December, per CME Group’s Fedwatch tool. Wednesday’s consumer prices report for May could offer investors fresh insights on how the rise in energy prices due to the Iran war is impacting inflation. Citigroup was the latest brokerage to raise its 2026-end target for the S&P 500 to cross the 8,000 mark, citing corporate earnings resilience and AI-driven growth. Relentless optimism around AI has aided Wall Street’s recent record run, but lingering concerns over the economic impact of the Iran war have clouded investor sentiment. Among other movers, Marvell Technology jumped almost 10% with the chipmaker set to join the benchmark S&P 500 before the start of trading on June 22. Flex was marginally up after the electronics manufacturer also secured a spot. Eli Lilly advanced 2.3% after the drugmaker’s trial results showed its next-generation obesity drug retatrutide curbed sleep apnea severity in addition to boosting weight loss and helping knee pain. Advancing issues outnumbered decliners by a 1.76-to-1 ratio on the NYSE and by a 1.97-to-1 ratio on the Nasdaq. The S&P 500 posted 5 new 52-week highs and 4 new lows while the Nasdaq Composite recorded 47 new highs and 57 new lows.

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