NEW YORK, June 8, 2026, 16:04 EDT
Nasdaq leads gains as chip stocks bounce; Dow flat
U.S. equities ended in the green Monday after buyers returned to technology and chip stocks. Nasdaq Composite led with a 1.27% gain, closing up 329.47 points at 26,036.94. The S&P 500 rose 47.67 points, or 0.63%, to 7,430.49. The Dow posted a small advance, up just 6.62 points, or 0.01%, to 50,871.37. The Philadelphia SE Semiconductor Index added 6.2%. “A little bit of bargain hunting,” said Rick Meckler, partner at Cherry Lane Investments. Reuters
AI and chip stocks led Friday’s drop, setting back the market’s leaders. All three major indexes tumbled, with the Nasdaq posting its heaviest daily percentage drop since April 2025. The S&P 500 ended a nine-week Friday winning streak after nonfarm payrolls blew past forecasts.
Monday’s session tested if investors would keep chasing the AI trade with prices already high. Citigroup lifted its S&P 500 year-end call to 8,100 from 7,700, pointing to earnings and AI interest, saying it had “high confidence” in more earnings surprises. The bank described the AI buildout as a “one-time capex supercycle”—referring to capital spending on things like data centers, chips, and servers—but flagged growth after 2027 as uncertain. Reuters
Marvell Technology jumped after S&P Dow Jones Indices said it will join the S&P 500 before the open on June 22. Marvell, along with bigger competitor Broadcom, makes custom chips for cloud data centers. These chips are used by firms looking for options beyond Nvidia’s pricey AI processors. Nvidia CEO Jensen Huang once called Marvell the next “trillion-dollar company.” Reuters
Traders kept Fed rate bets on the board. Fed funds futures priced a 70% chance of a rate hike by December, after Friday’s jobs data. Kevin Flanagan at WisdomTree said the Treasury front end had “priced in a rate hike,” but said, “I don’t think the Fed is there yet.” Eyes are now on the Consumer Price Index release Wednesday. Economists see core CPI up 0.3% in May from April, and up 2.9% year-on-year. Reuters
New York Fed’s May consumer survey sent a mixed message. Households now expect one-year inflation at 3.5%, down from 3.6%, and kept three-year and five-year inflation views unchanged at 3.1% and 3.0%. But survey respondents said credit got tougher and job prospects dimmed.
Monday’s bounce could end up as just a breather. Goldman Sachs is now calling for the Fed to hold rates steady through 2026 and to push off any rate cuts until 2027, citing the latest strong employment numbers. The bank also said a rate hike is now “slightly more plausible” than before. Higher rates tend to pressure growth stocks since future profits lose value when discounted at a steeper rate. Reuters
Downside risks are clear. Another strong inflation print, rising oil, or new worries around AI spending could flip dip-buying back to selling. The market bounced back fast before. Still, it’s relying on a narrow, pricey trade.
Wall Street shrugged off Friday’s chip selloff, seeing it as a one-off scare. The next session may be rougher.
