(Updates to midafternoon, adds analyst comments and market details)
* Marvell Technology set to join S&P 500, shares jump
* Tech shares lead gains following Friday’s selloff
* Indexes up: Dow 0.01%, S&P 500 0.6%, Nasdaq 1.3%
By Caroline Valetkevitch and Sruthi Shankar
June 8 (Reuters) – U.S. stocks rose on Monday, led by gains in the Nasdaq and chipmakers as investors sought bargains after Friday’s sharp selloff. Investors also were relieved by signs of cooling tensions in the Middle East. Iran and Israel said they had halted attacks on each other after an appeal from U.S. President Donald Trump that they immediately “stop shooting.”
The attacks over 24 hours were the most direct confrontation between Iran and Israel since an April ceasefire in the war. S&P 500 technology led gains among sectors, increasing 1.8%, while the Philadelphia SE Semiconductor Index advanced 6.2%, rebounding from Friday’s losses that wiped out $1 trillion in market value for U.S.-listed chipmakers. Intel shares jumped 12% after news website the Information reported that Alphabet’s Google had placed an order to manufacture more than 3 million tensor processing units in 2028.
“Today looks like a day where investors are doing a little bit of bargain hunting off the big tech selloff,” said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey. “What normally happens after that is you get analysts coming in and reiterating buys.”
He added: “This market has been priced for quite a while for perfection, and these are certainly imperfect times. In that environment, you are going to see some back-and-forth, and some fear of prices having gone too far.” Stocks sold off late last week after hitting a series of record highs recently. Underwhelming results from chipmaker Broadcom last week had raised concerns that the chip sector was growing too fast, while much stronger than expected jobs data for May contributed to Friday’s rout, as traders priced in interest rate increases this year. Broadcom shares were up 2.3% on Monday.
The Dow Jones Industrial Average rose 6.62 points, or 0.01%, to 50,871.37, the S&P 500 rose 47.67 points, or 0.63%, to 7,430.49 and the Nasdaq Composite rose 329.47 points, or 1.27%, to 26,036.94.
Also, Apple CEO Tim Cook launched the company’s annual Worldwide Developers Conference by saying the day’s announcements will center on Apple Intelligence and Siri. Apple shares were last down 1.4%. Among other movers, Marvell Technology jumped almost 15% with the chipmaker set to join the benchmark S&P 500 before the start of trading on June 22. Looking ahead this week, SpaceX’s initial public offering on Friday could also prove a major test for U.S. stock markets, with investors wary of possible overexuberance. Eli Lilly advanced 2.7% after the drugmaker’s trial results showed its next-generation obesity drug, retatrutide, curbed sleep apnea severity in addition to boosting weight loss and helping knee pain.
On the Nasdaq, 2,765 stocks rose and 1,908 fell as advancing issues outnumbered decliners by about a 1.45-to-1 ratio. There were 127 new highs and 163 new lows.
On the New York Stock Exchange, advancing issues outnumbered declining ones by a 1.3-to-1 ratio. There were 105 new highs and 126 new lows.
(Reporting by Caroline Valetkevitch in New York and Sruthi Shankar in Bengaluru; Additional reporting by Twesha Dikshit and Joel Jose in Bengaluru; Editing by Devika Syamnath and Matthew Lewis)
