U.S. stocks opened stronger on Monday, with the technology sector leading a rebound in major indices. The previous trading day saw a significant pullback in AI and semiconductor sectors, with the Nasdaq experiencing its largest single-day drop since April 2025. This latest rebound suggests that some investors still view last week's decline as a temporary correction, rather than a fundamental shift in the main AI trading theme.
The three major stock indexes rebounded collectively.
As of Monday's trading session, the S&P 500 was up about 0.9%, the Nasdaq Composite was up about 1.4%, and the Dow Jones Industrial Average was up more than 200 points, or about 0.4%.
Semiconductor stocks were the main driver of this recovery. The market generally associates this rebound with a technical correction after last Friday's sharp decline, reflecting that investors' expectations for spending on data centers, advanced computing power, and AI applications have not cooled significantly.
Easing tensions in the Middle East have lowered oil prices.
Another reason for the improved market sentiment is that the conflict between Iran and Israel has not yet escalated further. Previously, missile exchanges between the two sides had pushed up crude oil prices and triggered market concerns about rising energy costs.
However, with Iran stating that its military operation against Israel had ended, and US President Trump saying that negotiations were ongoing and calling for a cessation of attacks, market concerns about a wider conflict eased. As a result, crude oil prices retreated from their intraday highs, and concerns about further inflationary pressures also eased.
Markets are turning to this week's CPI.
With geopolitical risks temporarily easing, investors are turning their attention back to US inflation data. The US will release its latest Consumer Price Index (CPI) on June 10, 2026, which will be one of the most closely watched macroeconomic events this week.
Last week's relatively strong US jobs data has already sparked market concerns that the Federal Reserve may maintain its restrictive policy stance for an extended period. If this CPI data shows that energy prices are beginning to pass through to broader price levels, expectations for interest rate cuts may be further postponed, and growth stock valuations may face new pressure.
SpaceX's IPO Expectations Rise
Besides macroeconomic data, the market is also focusing on other important events this week. The report mentions that SpaceX's anticipated IPO has become a hot topic on Wall Street. If it proceeds smoothly, it will be a crucial indicator of the financing needs of high-growth technology companies and the market's capacity to absorb them.
Overall, Monday's rebound indicates that, given that valuation, inflation, and geopolitical risks have not completely subsided, investors' willingness to allocate to technology stocks, especially AI-related sectors, has not weakened significantly.
