New York, June 8, 2026, 11:03 EDT
- The Nasdaq climbed as chip stocks bounced after Friday’s drop.
- The S&P 500 was at 7,448.31, up 0.87%. The Dow added 0.22% and the Nasdaq climbed 1.43%.
- Traders are waiting for Wednesday’s May consumer price index report, looking for the latest inflation numbers.
Tech and chip stocks pushed Wall Street higher Monday morning as the AI trade picked up again after a tough Friday. The Nasdaq Composite jumped 1.43%. The S&P 500 climbed 0.87% to 7,448.31. The Dow Jones Industrial Average added 0.22%, according to LSEG data cited by Reuters.
AI chip and computing power demand had started to look shaky, raising questions about one of the year’s strongest market drivers. But Monday’s bounce showed investors sticking with the trade for now, while keeping an eye on rates, oil, and upcoming earnings risk.
The next test for markets comes Wednesday, when the Labor Department will release its consumer price index at 8:30 a.m. ET. The CPI tracks what households pay for goods and services. Traders will be watching for any signs that energy costs, tariffs or strong demand continue to push up inflation.
Intel jumped 8.5%, leading chip stocks higher on a Reuters report that Alphabet picked Intel to produce 3 million in-house chips and that Nvidia was looking at Intel’s technology. Nvidia rose 1.7% and Micron was up 8.7%, with the Philadelphia semiconductor index up 4.6%.
“Sometimes these moves get too far too fast and you need a bit of a pullback,” Art Hogan, chief market strategist at B Riley Wealth, said. Hogan suggested a pullback might send money into other sectors, arguing this is more sector rotation than investors leaving stocks. Reuters
Citigroup bumped its S&P 500 year-end target to 8,100 from 7,700, and moved its 2026 S&P 500 EPS forecast to $350. The bank pointed to strong corporate profits and AI-fueled growth. But it also said how long AI can keep pushing returns past 2027 is still unclear.
Morgan Stanley’s Mike Wilson pushed back on the more bearish interpretations of Friday’s selloff, telling The Wall Street Journal the move was “inevitable and ultimately healthy” for the bull market. Wilson kept his S&P 500 year-end target at 8,000, according to the Journal. The Wall Street Journal
Goldman Sachs is now seeing a tougher rate outlook. The bank expects the Federal Reserve to leave rates steady through 2026 and push any cuts out to 2027. It cited stronger economic activity and jobs numbers, which it says have made it harder for the Fed to justify a rate hike, though Goldman still sees hikes as unlikely.
Oil prices whipsawed. Overnight, prices surged on trouble between Israel and Iran, but later dropped when Iran announced an end to its operations. AP said Brent crude traded near $94.29, under an overnight high around $98.
The mood wasn’t all bullish. Big tech was mixed, and investors still face risks if AI spending slips, inflation heats up again, or oil climbs and keeps the Fed wary.
Buyers moved back into chips, keeping the S&P 500 in the green and the Dow above water. But Monday’s bounce is still tied to rates and oil prices, both of which can shift fast.
