Stocks Gain as Buyers Step In After AI-Led Selloff: Markets Wrap
(Bloomberg) — Wall Street staged a comeback as dip buyers emerged, lifting stocks amid renewed enthusiasm over artificial intelligence and bets that a solid economy will keep powering Corporate America.
In a tech-led rebound, the S&P 500 rose 1%. The Nasdaq 100 climbed twice as much after a selloff that drove chipmakers to their worst session since 2020. The index of high-profile firms such as Nvidia Corp. and Micron Technology Inc. jumped 7%. Bitcoin joined the advance in riskier assets. Also helping sentiment was the fact that oil pared an earlier surge on signs that Israel and Iran are looking to de-escalate hostilities.
Following a brief pause in the rally that sent equities to a series of all-time highs, momentum-chasing traders returned, energizing bets that the bull market is nowhere near its end.
The positioning-driven selloff in US stocks on Friday was a “healthy reset,” according to Morgan Stanley strategists led by Mike Wilson, who maintained their constructive outlook, supported by earnings growth and resilient economic data.
“Markets rarely move in a straight line at the pace seen since the March lows,” they said. “In our view, a correction was inevitable and ultimately healthy if this bull market is going to extend into year-end, which remains our baseline with an 8,000 S&P 500 target.” The gauge is currently around 7,450.
His optimism was echoed by Citigroup Inc. strategists led by Scott Chronert, who raised their year-end target for the S&P 500 to 8,100 from 7,700, after a “big step up” in earnings expectations.
“We do not expect investors to lose confidence in the AI outlook,” said Mark Haefele at UBS Global Wealth Management. “Although tech stocks have come under pressure in recent days amid concerns about whether expectations can be met, business fundamentals remain strong.”
Haefele also noted that markets continue to overstate the “hawkishness” of top central banks. In his view, the risk of a Federal Reserve rate hike remains low, and despite the strong pace of jobs growth, he bets policymakers are also likely to be reassured by the slowing of wage growth.”
The rebound in stocks is a sign that investors viewed last week’s weakness as a reset in crowded trades rather than the start of a broader risk-off move, according to Mark Hackett at Nationwide.
“The question for the week ahead is whether that resilience can hold as investors digest inflation data and a wave of high-profile IPOs and equity offerings, which could provide an important test of whether investors are rotating capital into new opportunities or becoming more cautious on risk assets,” he said.
Corporate Highlights:
Apple Inc. investors have spent nearly two years clamoring for the iPhone maker to make a big splash with artificial intelligence. Their wait may finally be coming to an end this week at the company’s annual Worldwide Developers Conference. Intel Corp. climbed after the Information reported that Alphabet Inc.’s Google will rely on it for more than 3 million specialized AI chips in 2028. Marvell Technology Inc. and Flex Ltd. will join the S&P 500 in the latest quarterly rebalance, replacing Pool Corp. and Campbell’s Co. before the start of trading on June 22. Ciena Corp. is planning to raise $2 billion by issuing debt that can be converted into shares, joining the ranks of companies capitalizing on the demand from a massive buildout of AI infrastructure. Bending Spoons, which acquires struggling software businesses, has filed for an initial public offering in New York, joining a string of European tech companies seeking US listings. What Bloomberg strategists say…
“S&P 500 history suggests it takes a confluence of valuation, tightened financial conditions and economic weakness to tip the balance of a bull market. Until we see more punishing yields and oil prices that force a consumer capitulation, an overbought market can continue to push higher.”
—Edward Harrison, Macro Strategist, Markets Live. For the full analysis, click here.
Some of the main moves in markets:
Stocks
The S&P 500 rose 1% as of 11:27 a.m. New York time The Nasdaq 100 rose 2.4% The Dow Jones Industrial Average rose 0.3% The Stoxx Europe 600 was little changed The MSCI World Index rose 0.6% Currencies
The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.2% to $1.1546 The British pound was little changed at $1.3348 The Japanese yen rose 0.1% to 160.06 per dollar Cryptocurrencies
Bitcoin rose 3.6% to $64,068.4 Ether rose 4.4% to $1,699.53 Bonds
The yield on 10-year Treasuries advanced one basis point to 4.54% Germany’s 10-year yield advanced one basis point to 3.05% Britain’s 10-year yield advanced two basis points to 4.93% Commodities
West Texas Intermediate crude rose 1.1% to $91.58 a barrel Spot gold rose 0.1% to $4,332.84 an ounce ©2026 Bloomberg L.P.
