New York, June 8, 2026, 18:02 EDT
- The VIX dropped back below 20 on Monday, giving up some of Friday’s spike. It stayed well above its lows from last week.
- Chip stocks bounced. The Philadelphia Semiconductor Index led the move, recovering after a selloff that erased roughly $1.3 trillion from the value of U.S.-listed chip companies.
- Dip buyers face their next tests with rates, inflation data, and Middle East risks still ahead.
The VIX slipped on Monday with buyers returning to chip stocks. That followed a sharp drop in semiconductors in the prior session that rattled a market betting on nearly flawless conditions.
VIX dropped 12.04% to 18.92 late Monday, according to Cboe, after closing at 21.51 on Friday. The volatility gauge, used to read S&P 500 moves from options prices, opened the day at 20.29.
Friday’s selloff stands out. It cut off a long rally in artificial intelligence names and left traders questioning if chip stocks had rallied for two months past what earnings and rates could support.
S&P 500 closed up 0.30% and the Nasdaq Composite rose 0.86% on Monday. The Philadelphia Semiconductor Index advanced 5.6%, trimming some of Friday’s drop. Intel jumped 11.2% after a report said Google ordered over 3 million tensor processing units for 2028.
Chip stocks took a harder hit on Friday. U.S.-listed chipmakers lost about $1.3 trillion in market value, with the PHLX chip index down 10.3% for its worst single-day loss since March 2020. Nvidia, Micron and Advanced Micro Devices traded lower. Broadcom’s weak numbers earlier in the week weighed on the sector.
“Today looks like a day where investors are doing a little bit of bargain hunting,” said Rick Meckler, partner at Cherry Lane Investments. But Meckler said a market “priced for perfection” could hit trouble if conditions get less clean. Reuters
Marvell Technology shares jumped over 9% after S&P Dow Jones Indices said it will add the company to the S&P 500 ahead of the open on June 22, replacing Pool Corp. Reuters reported Marvell dropped 16.7% on Friday in the chip selloff.
The bounce didn’t answer the bigger question. The chip index set a record last Wednesday and, despite dropping on Friday, stayed up 73% for the year, Reuters reported. Ohsung Kwon, Wells Fargo’s chief equity strategist, said chips were “way overbought.” He stopped short of calling it the end of the chip bull run. Reuters
Labor market data kept interest-rate concerns in focus. Nonfarm payrolls grew by 172,000 in May, according to the Labor Department. Gains came from leisure and hospitality, local government and health care. A stronger jobs market has added to the pressure on the Federal Reserve, as investors remain on alert for signals that rates could stay elevated or move higher.
Joe Mazzola at Charles Schwab said stocks got a lift from early “buy the dip” moves following Friday’s selloff in chips, but added that investors may stay wary with key inflation numbers ahead this week. Schwab pointed to the 10-year Treasury yield holding at 4.53%. The VIX dropped under 19 on Monday morning, after trading below 16 last week. Schwab Brokerage
Oil lost some ground after earlier gains as Reuters said Iran and Israel both said they had stopped attacking each other, following a request from U.S. President Donald Trump. Tehran warned it might strike again if Israel keeps hitting Hezbollah in Lebanon. Brent crude finished up 1.25% at $94.25 a barrel.
Monday’s bounce may just be a tactical move, not a lasting one. Schwab pointed out that VIX futures still trade above the spot VIX, or contango, so traders continue to see more uncertainty even as the cash fear gauge dropped. New numbers on inflation, shifts in bond yields, or more pressure on chips could test the rebound.
