New York, June 8, 2026, 18:02 EDT
- The VIX dropped under 20 on Monday, giving back some of Friday’s jump, but it stayed higher than last week’s lows.
- Chip stocks bounced as the Philadelphia Semiconductor Index climbed, clawing back some ground after a selloff erased roughly $1.3 trillion from U.S.-listed chipmakers.
- Dip buyers are looking ahead to rates, inflation data, and Middle East risk as their next tests.
Wall Street’s main volatility index dropped on Monday, with chip stocks rebounding after falling hard in the previous session. The move came as traders returned to the sector following a quick selloff that shook a market set up for nearly flawless trading.
VIX dropped 12.04% to 18.92 late Monday, according to Cboe. The gauge, tracking S&P 500 volatility for the coming month through options prices, had finished at 21.51 Friday and started the session at 20.29.
Friday’s selloff stands out. The drop snapped a long run for artificial intelligence-linked shares, pushing traders to take another look at whether chip stocks’ two-month surge had outpaced earnings, rates, and balance-sheet math.
S&P 500 closed up 0.30% Monday and the Nasdaq Composite gained 0.86%. The Philadelphia Semiconductor Index added 5.6%, recovering some ground after losing on Friday. Intel jumped 11.2% after word that Google put in an order for over 3 million tensor processing units for 2028.
Friday hit hard. U.S.-listed chip stocks wiped out nearly $1.3 trillion in market cap as the PHLX chip index tumbled 10.3%, marking its steepest slide since March 2020. Nvidia, Micron and Advanced Micro Devices all dropped, with a downbeat report from Broadcom earlier in the week dragging on the whole sector.
“Today looks like a day where investors are doing a little bit of bargain hunting,” said Rick Meckler, partner at Cherry Lane Investments. He added that a market “priced for perfection” may get into trouble if conditions are less than perfect. Reuters
Marvell Technology stock jumped over 9% after S&P Dow Jones Indices said it will add the company to the S&P 500 before the open on June 22, in place of Pool Corp. Marvell had slid 16.7% on Friday when chip stocks fell across the board, according to Reuters.
Chip stocks gave up ground Friday but the bigger question stayed. The chip index made a record high last Wednesday and even with Friday’s drop was still up 73% for the year, Reuters said. Ohsung Kwon, chief equity strategist at Wells Fargo, said the group had been “way overbought.” He stopped short of calling this the top for the semiconductor rally. Reuters
Rate jitters are dominating trade. Nonfarm payrolls increased by 172,000 in May, according to the Labor Department, with job growth in leisure and hospitality, local government, and health care. The jobs report puts more pressure on the Federal Reserve as markets stay alert for clues on whether rates will remain elevated or move higher.
Stocks picked up some early “buy the dip” action on Monday’s open after chip stocks dropped Friday, according to Charles Schwab’s Joe Mazzola. Mazzola said investors could stay cautious with inflation data on deck this week. He pointed to a 4.53% yield on the 10-year Treasury and noted the VIX had slipped back under 19 early Monday, though it was still above the sub-16 low from last week. Schwab Brokerage
Geopolitics stayed in focus. Oil gave back some gains as Reuters said Iran and Israel paused attacks after a call from U.S. President Donald Trump. But Tehran warned it might start again if Israel kept hitting Hezbollah in Lebanon. Brent crude still finished up 1.25% at $94.25 a barrel.
Monday’s bounce may not last. Schwab noted VIX futures prices stayed above the spot index, keeping the market in contango and signaling traders were still bracing for more uncertainty even as the cash volatility gauge dipped. The next move could depend on new inflation numbers, bond yields, or more weakness in chip stocks.
