Tech Giants Power Stock Gains After AI-Fueled Rout: Markets Wrap
(Bloomberg) — A rally in several technology giants lifted stocks as the recent artificial-intelligence selloff lured buyers betting the industry’s investment boom will continue to support solid corporate earnings.
In the final stretch of what’s set to be the best quarter for the S&P 500 in six years, the index advanced about 1%. A gauge of the Magnificent Seven megacaps, which has largely underperformed the market this month amid valuations worries, climbed 2% on Monday. In a volatile session, chipmakers rebounded after posting their worst week since April 2025.
“The bounce we’re seeing is a welcome development for the bulls,” said Matt Maley at Miller Tabak. “We continue to believe strongly that the action in the tech sector will continue to be the main driver in the stock market.”
While tech doesn’t have to keep outperforming in a big way, the sector needs to refrain from declining in a significant manner due to its heavy weight in the S&P 500, he noted. Otherwise, individual investors could start “rotating” toward cash, especially after hearing so much talk about bubbles in the past year, Maley added.
The stock resurgence has defied skeptics, coming in the face of war, an oil supply shock and inflation jitters. Since bottoming three months ago, the US equity benchmark has staged one of the swiftest rebounds this century, gaining 20% from its March 30 low to its June 2 peak — something it has done just three other times since 2000.
“As the week begins, remember it marks the end of the quarter and the first half,” said JJ Kinahan at Cboe Global Markets. “That means we’re likely to see waves of volatility as institutional fund managers rebalance their portfolios. Expect some instability, but don’t overthink it.”
Equities rebounded despite a rise in oil prices, with traders keeping a close eye on the geopolitical front. President Donald Trump said peace talks with Iran are set to resume on Tuesday in Doha after both sides agreed to halt a series of tit-for-tat attacks over the Strait of Hormuz. The renewed strikes served as a reminder of the fragility of their truce.
Calm prevailed in the Treasury market as the US Supreme Court ruled that Federal Reserve Governor Lisa Cook can stay in her job for now, reinforcing the central bank’s independence from the White House.
“A Fed perceived as subject to political direction would likely introduce a persistent risk premium to US dollar-based assets,” said Michael Reynolds at Glenmede. “Removing that tail risk, even one that markets had only remotely priced, is a quiet but meaningful positive for the stability of the long-term rate outlook.”
Elsewhere, a small decline sent the yen to its weakest level against the dollar since 1986.
Corporate Highlights:
Verizon Communications Inc. and the UK’s BT Group Plc agreed to create a joint venture for their international businesses in a merger that will take the low-margin units off their books and allow the carriers to focus on their home markets. Comcast Corp. plans to spin off NBCUniversal and Sky, unwinding a strategy that began more than a decade ago after struggling to demonstrate that a cable and media conglomerate would benefit shareholders. Rocket Lab Corp. agreed to buy Iridium Communications Inc., a pioneer in satellite telephones, in a cash-and-stock transaction as smaller players in the orbital economy try to catch up with market leader SpaceX. Martin Marietta Materials Inc. agreed to combine with building materials supplier Lhoist North America in a transaction valued at $13.5 billion, including debt. Michael Saylor’s Strategy Inc. unveiled a sweeping overhaul of the financing model underpinning its Bitcoin strategy, giving itself broader powers to sell the cryptocurrency, buy back securities and preserve liquidity as it adapts to mounting pressure on the structure that fueled years of aggressive accumulation. What Bloomberg Strategists say…
“Activity in leveraged equity ETFs tends to pose technical risks to the market given that investors in these funds tend to buy into strength and sell into weakness. While such a tendency helped the Nasdaq 100 on its way up, it’s proving to be a double-edged sword now.”
—Kristine Aquino, Macro Strategist, Markets Live. For the full analysis, click here.
Some of the main moves in markets:
Stocks
The S&P 500 rose 0.8% as of 1 p.m. New York time The Nasdaq 100 rose 1.8% The Dow Jones Industrial Average rose 0.5% The MSCI World Index rose 0.7% Currencies
The Bloomberg Dollar Spot Index was little changed The euro rose 0.4% to $1.1425 The British pound rose 0.4% to $1.3254 The Japanese yen fell 0.1% to 161.95 per dollar Cryptocurrencies
Bitcoin rose 0.4% to $59,791.06 Ether rose 0.7% to $1,582.78 Bonds
The yield on 10-year Treasuries advanced one basis point to 4.38% Germany’s 10-year yield was little changed at 2.86% Britain’s 10-year yield declined two basis points to 4.72% Commodities
West Texas Intermediate crude rose 2.3% to $70.84 a barrel Spot gold fell 1.6% to $4,024.25 an ounce ©2026 Bloomberg L.P.
