New York, June 8, 2026, 10:05 EDT
Stocks opened up on Wall Street Monday, bouncing after a steep drop. Chip shares rebounded and some signs of calmer Middle East tensions seemed to outweigh early oil moves. The Dow Jones Industrial Average started up 0.26%. The S&P 500 opened ahead by 0.77%. The Nasdaq Composite jumped 1.38%.
Markets now have to deal with two shocks at the same time: another inflation risk from higher oil and a rate scare after strong U.S. jobs numbers. Nonfarm payrolls increased by 172,000 in May and unemployment stayed at 4.3%, the U.S. Bureau of Labor Statistics said. That report kept worries alive that the Federal Reserve could leave rates higher for longer.
Tech stocks are getting hit outside the U.S. as well. Reuters reported the Nasdaq dropped 4.2% on Friday, with South Korea’s KOSPI down 8.3% Monday. Japan’s Nikkei gave up almost 4%, and Taiwan’s main index fell 3.5%. “The big surprise is not that we had a selloff, but that we didn’t have it before,” said Lars Skovgaard, senior investment strategist at Danske Bank. Reuters
Oil pulled back from earlier highs after Iran’s military said attacks on Israel had stopped. Brent crude was up 1.5% at $94.52 a barrel by 1304 GMT, with West Texas Intermediate gaining 1.1% to $91.57. Both benchmarks were up over 5% at one point.
Iran and Israel say they have stopped attacking each other. U.S. President Donald Trump called for both sides to stop firing. Reuters said this was the most direct clash between the two in 24 hours since April’s ceasefire. Tehran warned it would launch new strikes if Israel kept targeting Hezbollah in Lebanon.
Asia’s hardware stocks took the biggest hit. The Times of Israel said Samsung dropped over 10% and SK hynix slid 7.7%. Swissquote senior analyst Ipek Ozkardeskaya said that higher borrowing costs “reduce the present value of future earnings,” which weighs on tech shares valued for expected growth. The Times of Israel
Oil traders could be underestimating supply risks as the market keeps lacking solid data. Reuters’ Ron Bousso said the Strait of Hormuz, which accounted for about 13% of worldwide supply before the recent shutdown, has been mostly closed for over three months. Traders are still guessing on stockpiles and demand with little information.
Diplomacy remains shaky. Iranian Foreign Ministry spokesperson Esmaeil Baghaei said the recent exchanges will make the “chaotic diplomatic process” with Washington even worse. Baghaei added that Tehran is trading messages with the United States under “extreme suspicion.” Reuters
Right now, markets are reading the flare-up as a limited shock, not a shift in the overall trend. That could flip fast. Any new strike, a more extended Hormuz shutdown, or another run-up in U.S. yields would pressure the rebound in chip names and push on the broad market again.
