Chip Stocks Poised for Best Day in Year After Rout: 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 resumed its advance from war-fueled lows. The Nasdaq 100 rose about 2%, with chipmakers on track for their best day in over a year. The index of high-profile companies such as Nvidia Corp. and Micron Technology Inc. jumped 6.5%. Bitcoin joined the bounce in riskier assets. Also helping sentiment was the fact that oil pared its surge as Iran and Israel pledged to ease strikes that threatened peace talks.
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 rout in US stocks on Friday was a “healthy reset,” according to Morgan Stanley’s Mike Wilson, who maintained his 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,” he said. “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 7,425.
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.
After Friday’s blowout payrolls report, the focus shifted back to inflation. The May consumer price index due Wednesday is expected to jump by 4.2% from a year earlier — the highest rate in more than three years. But the core CPI is seen cooling slightly on a monthly basis — potentially providing a welcome signal to Fed officials.
The question is whether the market resilience can hold as investors digest inflation data and a wave of high-profile IPOs and equity offerings, according to Mark Hackett at Nationwide. They could provide an important test of whether traders are rotating capital into new opportunities or becoming more cautious on risk assets, he added.
Corporate Highlights:
SpaceX’s initial public offering is well oversubscribed, according to people familiar with the matter, as demand builds for a potentially record-setting debut. Apple Inc. unveiled the next generation of its artificial intelligence platform, including an update to its Siri digital assistant, part of a bid to catch up with Silicon Valley peers in a critical market. Intel Corp. surged after the Information reported that Alphabet Inc.’s Google will rely on it for more than 3 million specialized AI chips in 2028. Amazon.com Inc. is set to raise C$14 billion ($10 billion) from investment-grade bonds in Canadian dollars, the largest such offering on record, as US hyperscalers look beyond their home market to fund artificial intelligence spending. 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. 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. 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.”
—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 0.6% as of 2 p.m. New York time The Nasdaq 100 rose 1.9% The Dow Jones Industrial Average was little changed The MSCI World Index rose 0.2% Philadelphia Stock Exchange Semiconductor Index rose 6.6% Bloomberg Magnificent 7 Total Return Index rose 0.4% The Russell 2000 Index rose 1% Currencies
The Bloomberg Dollar Spot Index was little changed The euro rose 0.1% to $1.1539 The British pound was little changed at $1.3346 The Japanese yen was little changed at 160.16 per dollar Cryptocurrencies
Bitcoin rose 2.6% to $63,477.95 Ether rose 3.5% to $1,684.66 Bonds
The yield on 10-year Treasuries advanced two basis points to 4.55% Germany’s 10-year yield advanced two basis points to 3.06% Britain’s 10-year yield advanced four basis points to 4.94% Commodities
West Texas Intermediate crude rose 0.5% to $90.96 a barrel Spot gold rose 0.2% to $4,336.71 an ounce ©2026 Bloomberg L.P.
