The stock market rebounded on June 8, 2026, as semiconductor stocks surged and hopes for an end to Middle East conflict lifted investor sentiment, with the Nasdaq Composite gaining 0.9% and the S&P 500 rising 0.3%.
The semiconductor index jumped 5.6%, rebounding from Friday’s losses that wiped out $1 trillion in market value for U.S.-listed chipmakers, according to Reuters. The gains were led by major chip manufacturers including Nvidia and Micron Technology, which rose 9.9% after sliding 13.3% the previous session.
The chip sector’s recovery came as investors regained confidence in artificial intelligence and semiconductor demand. Chipmakers had suffered a sharp selloff on Friday, but Monday’s rebound suggested the underlying thesis for semiconductor strength remained intact. The PHLX Semiconductor index, which tracks the sector’s performance, showed the magnitude of the recovery after what had been the worst day for chip stocks in months.
Geopolitical tensions also eased, providing additional support for markets. On June 8, Iran and Israel announced they had halted strikes on each other, according to Reuters. Oil prices initially spiked as much as 5% when the military exchanges occurred, but fell back when Iran announced its first wave of strikes on Israel was over, the Guardian reported. The de-escalation removed a key source of market volatility that had weighed on sentiment earlier in the week.
The broader market remained mixed. The Dow Jones Industrial Average slipped 0.2%, or about 81 points, according to the Wall Street Journal, as energy stocks and other sectors failed to keep pace with technology’s gains. Still, the overall tone was one of relief as investors stepped back into beaten-down tech and semiconductor positions.
The dual drivers—a rebound in a critical sector and a reduction in geopolitical risk—combined to lift the stock market as it began a new trading week. Both factors addressed concerns that had rattled investors in the previous session, when fears of a broader tech slowdown and Middle East conflict had sparked the sharp selloff.
Sources
- Reuters — chip index rebound of 5.6%, S&P 500 and Nasdaq gains, Iran-Israel halt to strikes
- Wall Street Journal — Nasdaq close at 0.9%, S&P 500 at 0.3%, Dow decline of 0.2%
- Investopedia — confirmation of Nasdaq 0.9% and S&P 500 0.3% gains on June 8
- The Guardian — oil price movements following Iran announcement of end to military operations
- U.S. News & World Report — Micron Technology’s 9.9% gain after 13.3% Friday loss
