Dow slips 80 points as chip stocks rebound, ceasefire hopes lift markets

US stocks ended mostly higher on Monday as investors returned to semiconductor shares following last week's sharp selloff, while signs of easing tensions between Iran and Israel helped improve overall market sentiment.

The Nasdaq Composite led the gains, advancing 0.86% to close at 25,929.66, while the S&P 500 added 21.99 points, or 0.30%, to finish at 7,405.73.

The Dow Jones Industrial Average underperformed, slipping 80.77 points, or 0.16%, to 50,786.01.

The session marked a partial recovery from Friday's broad technology selloff, when the Nasdaq plunged 4.2% and roughly $1 trillion was erased from the market value of US-listed semiconductor companies.

Chipmakers lead Wall Street rebound

Semiconductor stocks were among the strongest performers as investors sought bargains after last week's rout.

Shares of Micron Technology jumped about 10% after falling 13% on Friday, while Nvidia and Broadcom also traded higher.

The Philadelphia Semiconductor Index rebounded alongside the broader technology sector after suffering heavy losses during the previous session.

Marvell Technology also gained after it was announced that the chipmaker would join the S&P 500 before trading begins on June 22.

Intel shares moved higher as well after The Information reported that Alphabet's Google had placed an order to manufacture more than 3 million tensor processing units in 2028.

The earlier weakness in chip stocks was driven by a combination of underwhelming results from Broadcom and stronger-than-expected US jobs data, which increased concerns that interest rates could remain higher for longer.

Ceasefire hopes support investor sentiment

Markets also found support from developments in the Middle East after Iran and Israel indicated they had halted attacks following an appeal from US President Donald Trump.

The pause came after the two countries exchanged strikes over a 24-hour period, marking their most direct confrontation since an April ceasefire.

Oil prices initially surged as Israel carried out what it described as a "large-scale strike on strategic defense systems" in response to Iranian attacks.

However, crude pared gains after Iran's Ministry of Foreign Affairs said military operations against Israel had ended.

West Texas Intermediate crude was last trading about 1% higher near $91 per barrel.

Investors look ahead to key events

Attention is now turning to several major catalysts later this week, including the release of US inflation data and the expected public debut of SpaceX.

The offering is widely expected to be one of the largest initial public offerings in Wall Street history and could become a significant test of investor enthusiasm surrounding artificial intelligence-related investments.

Meanwhile, Apple shares slipped late in the session despite unveiling a series of artificial intelligence upgrades to Siri at its annual Worldwide Developers Conference, with some investors appearing to adopt a "sell-on-the-news" approach.

Shares of Eli Lilly advanced after the drugmaker released clinical trial data showing that its next-generation obesity treatment, retatrutide, reduced the severity of sleep apnea while also delivering significant weight loss and improvements in knee pain.

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