Dow jumps 246 points as chip stocks rebound despite Iran tensions

• Intel received a boost from a Bank of America upgrade citing growing CPU demand and AI opportunities, helping lift the semiconductor sector after a 10% weekly decline
• President Trump signaled potential military action against Iran including targeting Kharg Island oil infrastructure, pushing WTI crude futures up nearly 1% to $90 per barrel
• Oracle shares sank following announcements of aggressive AI infrastructure spending plans, while May producer prices rose 0.8% month-over-month, exceeding the 0.7% forecast

Market Summary

Market Performance:

U.S. stocks rebounded Thursday with the Dow Jones rising 246 points, while the S&P 500 and Nasdaq Composite each gained 0.28-0.29%. The recovery follows Wednesday's steep 1%+ decline across major indexes. The S&P 500 remains approximately 4% below its early June record high, with technology stocks in correction territory after a 10% drop from recent peaks.

Semiconductor Sector Recovery:

Chip stocks led the rebound after a sharp selloff. Intel surged following a Bank of America upgrade, citing improving CPU demand and AI opportunities. Nvidia and Micron also recovered. The semiconductor ETF had previously plunged 10% on Friday, raising questions about the sustainability of the AI-driven rally.

Geopolitical Tensions:

Iran-related tensions limited broader market gains. West Texas Intermediate crude rose nearly 1% to approximately $90/barrel after President Trump signaled potential military action, threatening to seize Iran's Kharg Island and other oil infrastructure. U.S. Central Command conducted additional "self-defense strikes" late Wednesday.

Economic Data:

May producer prices exceeded expectations, while core inflation (excluding food and energy) came in at 0.4%. Unemployment claims increased modestly. The Federal Reserve is expected to hold rates steady at its June 17 meeting, though markets anticipate at least one quarter-point increase before year-end.

Corporate Highlights:

• Oracle declined on AI infrastructure spending concerns
• Navan jumped 11% after raising full-year revenue and operating income forecasts
• SpaceX market debut scheduled for Friday, valued at $1.75-1.8 trillion, potentially the largest public debut ever

The session reflects investor appetite for beaten-down tech stocks balanced against geopolitical and inflation concerns.