Dow rises 250 points as chip stocks rebound and Middle East fears ease

• Semiconductor stocks led the recovery after Friday's 4.2% Nasdaq plunge erased roughly $1 trillion in chipmaker market value; Micron jumped more than 8% after falling 13% the prior session
• Geopolitical tensions eased as Iran indicated its first wave of attacks on Israel had concluded and Israel halted strikes at President Trump's request, causing oil prices to pare earlier 5% gains
• Markets now pricing in 42% probability of a 25-basis-point Fed rate increase in December following stronger-than-expected May jobs data showing 172,000 nonfarm payrolls added

Market Summary: Dow Rises 250 Points on Chip Rebound and Geopolitical Relief

Market Performance:

U.S. markets opened significantly higher on Monday, June 8, 2026, with the Dow Jones rising 252 points, the S&P 500 gaining 0.94%, and the Nasdaq Composite up 1.34%. This rebound follows a brutal Friday selloff where the Nasdaq plunged 4.2%—its largest single-day decline since April 2025.

Semiconductor Sector Recovery:

Chip stocks led Monday's rally after losing approximately $1 trillion in market value on Friday. Key movers include Nvidia (NVDA) and Micron Technology (MU), with Micron surging over 8% after a 13% drop in the previous session. The iShares Semiconductor ETF (SOXX) also rebounded as investors returned to AI-related equities.

Geopolitical Developments:

Easing tensions between Iran and Israel boosted sentiment. Iran announced its first wave of attacks since an April ceasefire had concluded, while Israel reportedly halted strikes at President Trump's request. Oil prices moderated from earlier 5%+ gains, with WTI crude settling near $91 per barrel, up just over 1%.

Economic Data and Fed Policy:

Friday's stronger-than-expected May jobs report (172,000 nonfarm payrolls) raised concerns about prolonged Fed tightness. Markets now price in a 42% probability of a 25-basis-point rate hike in December. Investors await upcoming inflation data for further policy direction.

Global Spillover:

International markets suffered Monday, with South Korea's KOSPI plummeting over 8% and Japan's Nikkei falling 3.85%.

Looking Ahead:

SpaceX's anticipated IPO later this week is viewed as a critical test for AI investment enthusiasm amid heightened volatility.