US stocks turned swiftly into the green on Monday morning, with tech stocks leading a broad bounce back from Friday’s bruising session. Meanwhile, strikes between Iran and Israel put pressure on a fragile ceasefire in the Middle East, and investors continued to reprice rate-hike bets and assess the artificial intelligence trade.
The Dow Jones Industrial Average moved up 0.6%. The benchmark S&P 500 rose roughly 0.8% as the tech-exposed Nasdaq Composite jumped over 1% to lead gains.Markets start the week on strong footing even after the Nasdaq Composite dropped 4% on Friday and the S&P 500 snapped its nine-week winning streak. A strong rotation out of high-flying semiconductor stocks and into more defensive areas of the market came on the heels of a blowout May jobs report that strengthened the case for the Federal Reserve to raise interest rates later this year.
The Nasdaq stepped into a rebound on Monday as Nvidia CEO Jensen Huang and others suggested the tech rout could be an opportunity to buy into the AI trade. Chip stocks gained at the opening bell, with Micron up 9% and Nvidia adding 2%.
