New York, June 8, 2026, 11:03 EDT
- The Nasdaq led Wall Street higher as chip stocks recovered from Friday’s selloff.
- The S&P 500 traded at 7,448.31, up 0.87%; the Dow rose 0.22% and the Nasdaq gained 1.43%.
- Investors are watching Wednesday’s May consumer price index report for the next read on inflation.
Wall Street advanced in Monday morning trading, led by a rebound in chip and other technology shares, as investors moved back into the artificial intelligence trade after Friday’s sharp break in momentum. The Nasdaq Composite was up 1.43%, the S&P 500 rose 0.87% to 7,448.31 and the Dow Jones Industrial Average gained 0.22%, Reuters market data from LSEG showed.
The move matters because one of the year’s main market engines — demand for AI chips and computing power — had begun to look less certain. Monday’s bounce suggested investors were not ready to abandon the trade, even as they watched rates, oil and earnings risk more closely.
A second test is close. The Labor Department’s consumer price index, a broad measure of prices paid by households, is due Wednesday at 8:30 a.m. ET, giving traders a fresh read on whether energy costs, tariffs and strong demand are still feeding inflation.
Intel led the chip rebound after a report that Alphabet had tapped the company to make 3 million in-house chips, while Nvidia was evaluating Intel’s technology. Reuters reported Intel rose 8.5%, Nvidia gained 1.7% and Micron jumped 8.7%; the Philadelphia semiconductor index advanced 4.6%.
“Sometimes these moves get too far too fast and you need a bit of a pullback,” said Art Hogan, chief market strategist at B Riley Wealth. He said that pullback could draw investment into other sectors, pointing to rotation rather than a plain exit from stocks. Reuters
Citigroup gave bulls another data point, raising its year-end S&P 500 target to 8,100 from 7,700 and lifting its 2026 S&P 500 earnings-per-share forecast to $350. The firm cited resilient corporate profits and AI-led growth, but warned that the durability of AI-driven gains beyond 2027 was still an open question.
Morgan Stanley’s Mike Wilson also pushed back against a darker read of Friday’s selloff, calling it “inevitable and ultimately healthy” for the bull market, according to The Wall Street Journal. Wilson’s year-end S&P 500 target is 8,000, the Journal reported. The Wall Street Journal
But the rate backdrop has toughened. Goldman Sachs now expects the Federal Reserve to keep rates unchanged through 2026 and delay cuts until 2027, saying stronger activity and employment data have lowered the bar for a rate hike, though hikes remain unlikely.
Oil was another swing factor. Prices jumped overnight on concern about Israel-Iran fighting before pulling back after Iran said its operations had ended; AP reported Brent crude near $94.29, below an overnight high near $98.
The tone was not uniformly bullish. Big-tech gains were uneven, and investors remain exposed to any wobble in AI spending, a hotter inflation print or another rise in oil that would make the Fed more cautious.
For now, buyers were back in chips, the broader S&P 500 held gains and the Dow stayed positive. Monday’s rebound still rests on two things that can turn quickly: the price of money, and the price of oil.
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