Dip buyers lift tech as chip surge fuels Nasdaq rebound

Dip buyers pushed technology stocks higher on Monday as gains in semiconductor names drove a Nasdaq 100 rebound. Micron Technology and Intel rose roughly 5.6%–6.5%, and the Nasdaq 100 climbed 1.6%. The S&P 500 rose 0.3% to close above 7,405, while the Dow Jones Industrial Average fell 0.2%. Only three S&P 500 sectors finished higher: Technology, Energy and Consumer Discretionary.

The rally followed steep losses late last week that left several chip stocks deeply oversold. Traders and market participants attributed buying to technical support in heavily sold semiconductor shares and a retreat in short-term geopolitical risk. Oil had jumped over the weekend after strikes in the Middle East, but a temporary ceasefire and the resumption of some flights and movements reduced the initial spike. West Texas Intermediate settled near $91 a barrel and Brent near $94, below their early-session highs.

Fixed-income conditions offered a constraint on broader equity gains. The U.S. 10-year Treasury yield was about 4.57%, keeping borrowing costs elevated. Market participants noted that large upcoming equity listings could affect liquidity and capital allocation; SpaceX is planning a fixed-price initial public offering this Friday offering 555.6 million shares at $135 per share to raise about $75 billion and carry a fully diluted valuation near $1.77 trillion.

Regional markets showed spillovers from last week’s tech selloff before Monday’s rebound. South Korea’s KOSPI tumbled 5.5% on Friday after options-market liquidations triggered a severe clearing event. Indonesia’s benchmark index has fallen about 36% from its record high five months ago amid concerns over policy changes and new commodity export rules; the rupiah hit a record low near 18,180 per dollar, prompting central bank smoothing operations. In early Asian trade on Monday, the Nikkei 225 and KOSPI each rose about 3.6%, while China’s CSI 300 and Singapore’s STI posted smaller gains.

Currency moves included a modest recovery in the euro to about $1.1538 and a yen stabilising near 160.20 per dollar. The Australian dollar rebounded about 0.7% from an intraday low of 0.7024, trading below short-term resistance in the 0.7085–0.7100 area, where technical indicators have capped upside in recent sessions.

U.S. labor data released last week showed nonfarm payrolls rose by 172,000 in May. Measures of wage growth showed signs of easing, and some interest-rate models reduced the probability of a Federal Reserve rate increase in October. Citigroup raised its year-end S&P 500 target to 8,100, citing expected corporate earnings strength and capacity to absorb large-cap issuance.

Market participants will monitor several events this week for direction, including Germany’s trade figures, U.S. existing home sales and remarks by the European Central Bank president.