The stock market closed mixed on Monday as artificial-intelligence and semiconductor stocks staged a sharp rebound following Friday’s selloff, while geopolitical tensions between Iran and Israel continued to weigh on oil prices and investor sentiment.
The S&P 500 rose 0.30% to close at 7,405.73, while the tech-heavy Nasdaq Composite gained 0.86% to 25,929.66. The Dow Jones Industrial Average was the outlier, slipping 0.16% or 80.77 points to 50,786.01.
Chip stocks led the rebound after suffering steep losses on Friday. Micron Technology jumped nearly 10%, while Marvell Technology and Intel surged more than 14% and 12%, respectively. The iShares Semiconductor ETF climbed nearly 7%, bouncing back from a 10% plunge on Friday that marked its worst day in more than six years, according to CNBC reporting.
The rally reflected profit-taking and bargain hunting after the Nasdaq Composite dropped 4.2% on Friday—its worst decline since April 2025—as investors worried that AI stocks had climbed too far too fast. Monday’s recovery showed that many viewed the pullback as a healthy correction rather than the start of a deeper downturn.
Geopolitical developments in the Middle East provided some support for the market’s rebound. Iran’s Ministry of Foreign Affairs told CNBC that the country’s military had ended military operations against Israel after a brief escalation in strikes. President Donald Trump said Israel and Iran “are looking to do an immediate ceasefire” and that negotiations were proceeding. These developments helped oil prices retreat from intraday highs, with West Texas Intermediate crude settling at $91.30, up 0.84%, and Brent crude advancing 1.25% to $94.25 a barrel.
The easing of oil prices offered some relief to airlines, which have been hit hard by soaring fuel costs. U.S. airlines spent more than $6 billion on jet fuel in April alone, up 78% from a year earlier, according to government data cited by AP News. United Airlines rose 2.7% and Delta Air Lines climbed 2.6%.
However, the elevated oil prices from the ongoing Iran-Israel tensions have contributed to broader inflation pressures that could complicate the Federal Reserve’s policy path. Treasury yields eased slightly on Tuesday as oil prices fell further, with the 10-year yield dipping to 4.53% from 4.56%, but it remains well above the 3.97% level from before the war with Iran began, according to AP News reporting.
The mixed closing reflected the dual forces currently shaping markets: robust AI-related spending and investment demand alongside persistent geopolitical uncertainty. Investors continued to assess whether the sharp selloff in chip stocks represented a temporary correction or the beginning of a longer downturn in the AI trade that has driven much of the market’s gains this year.
Sources
- CNBC — S&P 500, Nasdaq, and Dow closing prices; chip stock rebounds; Iran military operations statement; oil price movements; airline stock performance
- AP News — U.S. airline fuel spending data; Treasury yield levels; oil price context
