New York, June 8, 2026, 11:03 (EDT)
- The Dow hovered around 51,110, up roughly 0.5%. The S&P 500 and Nasdaq posted bigger gains, with chip stocks rebounding.
- Traders picked up shares after Friday’s selling, with the strong jobs report last week reviving concerns about Fed rates.
- May CPI inflation data lands Wednesday. Oil prices and Treasury yields remain risks.
Dow Jones bounces back above 51,000 as chip stocks rebound The Dow Jones Industrial Average traded up 244 points, or 0.48%, to 51,110.80 in early Monday trading. The move comes after a sharp fall Friday, with chip makers lifting the index. The S&P 500 advanced 1.09% and the Nasdaq Composite gained 1.72%.
Bounce matters as traders weigh if Friday’s drop was just a quick reset or signals a tougher pullback after the AI rally. Nasdaq, with heavier tech weighting than the Dow, led the rebound. The Dow’s smaller move stayed closer to its usual industrials, banks, healthcare, and consumer stocks.
U.S. stocks traded during normal hours in New York. The NYSE runs Monday through Friday, 9:30 a.m. to 4:00 p.m. EDT. Juneteenth on June 19 is the exchange’s next listed 2026 holiday.
Dow Jones climbed 146.11 points, or 0.29%, to 51,015.91 soon after the open, Reuters said. The S&P 500 added 0.68% and the Nasdaq gained 1.09%. Chips led, with the Philadelphia semiconductor index up 4.6% on strength from Intel, Micron, and Nvidia. “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. Reuters
Dow Jones is a price-weighted index tracking 30 U.S. blue chips, so stocks with bigger share prices move it more than cheaper stocks. The S&P 500 does it differently, ranking companies by market cap. When tech rallies, moves tend to pop more in the Nasdaq and S&P 500 than the Dow.
Hotter jobs data set off Friday’s selloff. The Bureau of Labor Statistics reported U.S. nonfarm payrolls increased by 172,000 in May, with the unemployment rate steady at 4.3%. That mix dented bets on Fed rate cuts.
“We’re talking about a strong economy,” said Gary Schlossberg, market strategist at Wells Fargo Investment Institute, after Friday’s data. He said economic strength piled on top of inflation risk from the Gulf, making possible Fed rate cuts tougher to consider. Reuters
Bonds kept pressure on stocks. The two-year Treasury yield, closely tied to Fed policy expectations, slipped to 4.145%. The 10-year yield ticked up to 4.54%. A basis point equals one-hundredth of a percentage point. According to Reuters, Fed funds futures signaled traders see a 68% chance for a rate hike by December.
Stocks pushed higher, but the move looked shaky. Traders kept an eye on CPI numbers, with “core” CPI removing food and energy. Any sign of hotter inflation or another oil spike could put rate-hike talk back at the center of trading. “We do have this obvious push from energy inflation,” said Thomas Simons, chief U.S. economist at Jefferies.
Goldman Sachs pushed back its rate cut forecast, now telling clients the Fed will hold rates steady until 2027 and skip cuts through 2026. The call follows stronger economic and jobs figures in the payrolls report. The bank said the latest data “lower the bar for a rate hike” but it does not expect a hike to happen. Reuters
Citi took a more bullish stance, bumping its 2026 S&P 500 year-end target up to 8,100 from 7,700 and pointed to solid earnings and gains related to AI. “We have high confidence in continued earnings beats through year-end,” the bank said. But Citi also noted that whether AI-led growth sticks past 2027 “remains a key question.” Reuters
Dow, other indexes rebound as BMO’s Schleif sees ‘healthy reset’
Carol Schleif, chief market strategist at BMO Wealth Management, stayed in the reset camp, saying Friday’s pullback was “a healthy reset for stocks” and not a sign of bigger trouble. That was enough for now to bring buyers back into the Dow and other indexes. marketwatch.com
