Nasdaq Rebounds 0.86% After Worst Day Since April 2025, June 10

The Nasdaq Composite gained 0.86% on Monday to close at 25,929.66, clawing back part of Friday’s devastating 4.2% drop. Semiconductor stocks led the rebound, with Micron Technology surging 9.9% and Intel climbing 11% after both fell sharply on Friday. The recovery was fueled by easing Middle East tensions and a 5% drop in oil prices to around $86 per barrel, but market breadth remained weak and volatility persists.

Chip Rally Lifts Tech, But Gains Are Narrow

The semiconductor sector drove Monday’s rebound after a brutal Friday selloff. Micron Technology jumped 9.9% to recover from a 13% Friday plunge, while AI chipmakers Intel and Nvidia also surged. The iShares Semiconductor ETF climbed nearly 6% after its worst day in six years on Friday. However, only three of the S&P 500’s 11 sectors advanced, and the equal-weight S&P 500 fell 0.11%, signaling that gains concentrated in mega-cap tech names rather than broad market participation.

Middle East Ceasefire Hopes Drive Oil Lower

Oil prices fell sharply as President Trump signaled a potential Iran deal within days. West Texas Intermediate crude dropped 5% to trade around $86 per barrel after the U.S. Energy Secretary said Strait of Hormuz ship traffic was rising. This eased inflation concerns ahead of Tuesday’s critical US CPI report, expected to show inflation at 4.2% year-on-year, up from 3.8% previously. Lower energy costs boosted materials and consumer discretionary stocks.

Broader Market Weakness Masks Tech Recovery

The S&P 500 rose 0.30% to 7,405.73 and the Russell 2000 climbed 0.77%, but the Dow Jones fell 80.77 points or 0.16% to 50,786.01. The VIX volatility index dropped 12% to 18.92, confirming immediate panic had eased. Yet the S&P 500 finished well below its intraday high of up 1.13%, suggesting sellers returned as the day progressed. Investors are also rotating out of secular growth stocks into cyclical names like Home Depot that could benefit from reopened Middle East trade.

Headwinds Ahead: CPI, SpaceX IPO, and Rate Uncertainty

Tuesday’s US CPI report could prove pivotal for equities. A hotter-than-expected reading may pressure rate-sensitive tech stocks, while softer data could extend the rebound. SpaceX’s IPO on Friday at a $1.75 trillion valuation is creating market uncertainty, with analysts noting investors are nervous ahead of the listing. A stronger-than-expected US jobs report on Friday has also raised concerns that the Federal Reserve could keep interest rates higher for longer or even raise rates later this year.

Final Thoughts

The Nasdaq’s recovery is real but fragile. Narrow breadth, macro uncertainty, and upcoming catalysts mean volatility will persist. Investors should watch Tuesday’s CPI data closely, as it will determine whether tech can hold these gains.

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