S&P 500 Rebounds 0.3% as Chip Stocks Recover, June 09

The S&P 500 gained 0.3% to close at 7,405.73 on Monday, recovering from Friday’s worst day since October. Chip stocks led the rebound after plunging 10% the previous session. The Nasdaq climbed 0.86% to 25,929.66, while the Dow fell 0.16% to 50,786.01. Meyka rates the S&P 500 a C+ with a 12-month target of $7,250.83, suggesting limited upside from current levels.

Chip Rally Drives Market Recovery

Memory chipmaker Micron Technology surged nearly 10% after dropping 13% Friday. Nvidia and Broadcom also gained. The iShares Semiconductor ETF jumped 6% Monday after its worst day in six years on Friday. Investors who sold tech stocks Friday returned to buy at lower prices, a pattern called dip buying. The Nasdaq’s 4.2% decline Friday was its worst since April 2025.

Asia Markets Catch Up

Asian tech stocks rebounded Tuesday, tracking Wall Street’s gains. South Korea’s SK Hynix climbed 6.44% and Samsung Electronics gained 3.38%. Tokyo Electron rose 5.65% and Renesas Electronics added 2.54%. However, SoftBank shares dropped 2%. The rebound came after South Korea’s Kospi fell 8% Monday in response to Friday’s U.S. tech rout, showing how quickly sentiment can shift.

Geopolitical Tensions Ease Slightly

Iran and Israel traded military strikes over the weekend, raising oil prices. President Trump said both nations were seeking an immediate ceasefire and negotiations were proceeding. Oil prices pared their biggest gains as tensions eased. The fragile ceasefire remains uncertain, and analysts warn markets will stay volatile through the week as investors monitor developments and await major corporate announcements.

AI IPO Pipeline Builds Momentum

OpenAI filed confidential paperwork for a U.S. IPO on Monday, joining Anthropic in moving toward public markets. SpaceX is conducting an IPO roadshow with pricing expected Thursday and trading to begin Friday. Chip stocks rebounded strongly as investors rotated back into AI-linked names ahead of these listings. Analysts at ORTUS Advisors said rotation to defensive stocks will likely be short-lived as the IPO wave unfolds.

Final Thoughts

The S&P 500’s recovery signals dip buying rather than a sustained trend reversal. With Meyka rating the index a C+ and targeting $7,250.83 over 12 months, near-term volatility should persist as investors digest AI IPO valuations and geopolitical risks.

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