Dow slips 80 points as chip stocks rebound, ceasefire hopes lift markets

• Semiconductor stocks led the rebound after Friday's rout wiped roughly $1 trillion from US-listed chip companies; Micron surged approximately 10% after falling 13% on Friday, while Intel jumped following its announcement to join the S&P 500 on June 22.
• Iran and Israel paused military operations after a 24-hour exchange of strikes, following an appeal from President Trump; oil prices rose about 1% to near $91 per barrel but pared earlier gains after Iran announced an end to operations.
• Investors are focused on upcoming US inflation data and the SpaceX IPO, expected to be one of Wall Street's largest offerings and a major test of enthusiasm for AI-related investments.

Market Summary: Chip Stocks Rebound Amid Ceasefire Hopes

Market Performance:

U.S. markets closed mixed on Monday, with the Nasdaq leading gains at +0.86% to 25,929.66, while the S&P 500 added 0.30% to 7,405.73. The Dow Jones underperformed, declining 80.77 points (-0.16%) to 50,786.01.

Semiconductor Recovery:

Chip stocks led the rebound after Friday's brutal selloff that erased approximately $1 trillion in market value and sent the Nasdaq down 4.2%. Micron Technology surged nearly 10%, recovering from a 13% Friday decline. Nvidia and Broadcom also posted gains, alongside the Philadelphia Semiconductor Index. Intel received a boost after being announced for S&P 500 inclusion starting June 22.

The prior weakness stemmed from disappointing Broadcom results and stronger-than-expected jobs data, raising concerns about prolonged elevated interest rates.

Geopolitical Developments:

Investor sentiment improved following ceasefire signals between Iran and Israel after a 24-hour exchange of strikes—their most direct confrontation since April. Following U.S. President Trump's appeal, both nations halted attacks. West Texas Intermediate crude traded around $91 per barrel, up roughly 1% after initial volatility.

Upcoming Catalysts:

Markets are focused on key events this week, including U.S. inflation data and SpaceX's highly anticipated IPO, expected to be one of Wall Street's largest offerings and a critical test for AI-related investment appetite.

Market Implications:

The semiconductor sector's bargain-hunting rebound suggests investors view last week's selloff as overdone. However, rate sensitivity remains a concern. Geopolitical de-escalation provides near-term stability, though commodity markets remain reactive to Middle East developments.