The stock market rebounded on Monday as chip stocks staged a comeback from Friday’s severe selloff, with the S&P 500 gaining 0.3% to close at 7,405.73, according to The Globe and Mail.
The Nasdaq Composite climbed 0.9%, extending a recovery that began after semiconductor shares plummeted on Friday following disappointing guidance from Broadcom and a stronger-than-expected May jobs report.
Major chip companies bounced back sharply on Monday morning. Intel surged about 11% and Micron Technology climbed roughly 10%, according to Investopedia, rebounding from double-digit losses they suffered on Friday.
Friday’s selloff had been historic in its severity. The Nasdaq Composite dropped 4.2% for its worst decline since April 2025, while the S&P 500 fell 2.6%—its worst day since October, according to CNBC and Morningstar. The semiconductor index (SOX) plunged 10.26%, marking its worst single-day drop since March 2020, according to Crypto Briefing.
The carnage was staggering in scale. U.S.-traded chipmakers collectively lost about $1.3 trillion in market value on Friday alone, according to Reuters, with the broader market wiping $1.8 trillion in total value, per Morningstar. Major names including Nvidia, Broadcom, Micron, AMD, and Intel each fell between 6% and 17%, according to City National Bank of Florida.
Analysts characterized the reversal as a rotation out of technology and semiconductor stocks rather than a broader market breakdown. “The S&P 500 selloff looks more like rotation than market breakdown,” Investing.com reported, noting that the Nasdaq had fallen for a third consecutive day before Monday’s rebound. The weakness stemmed partly from Broadcom’s disappointing forward guidance earlier in the week, combined with the May jobs report showing stronger-than-expected employment that raised concerns about inflation and interest rates.
The Monday rebound marked a sharp reversal. Barron’s noted that the PHLX Semiconductor Index was up 6.5% on Monday, which would be its best one-day performance since May 12, 2025. Investors who had retreated from high-flying AI and chip stocks over the weekend rushed back in, seeking bargains after the steep decline.
The stock market’s recovery underscores the volatility that has characterized trading around semiconductor and artificial intelligence-related equities in 2026. While chip stocks had soared in the months leading up to Friday’s selloff on the back of AI boom expectations, the sharp reversal and quick rebound highlight how rapidly sentiment can shift in this sector.
Sources
- The Globe and Mail — S&P 500 closing level and 0.3% gain on June 9, 2026
- Investopedia — Nasdaq Composite 0.9% gain and Intel/Micron specific rebound percentages on June 8
- CNBC — Nasdaq 4.2% drop on Friday and characterization as worst decline since April 2025
- Morningstar — S&P 500 2.6% Friday decline, $1.8 trillion market value wipeout, worst day since October
- Crypto Briefing — PHLX Semiconductor Index 10.26% plunge on June 5, worst single-day drop since March 2020
- Reuters — $1.3 trillion loss in U.S.-traded chipmaker market value on Friday
- City National Bank of Florida — Specific percentage declines for major chip names (Broadcom, Micron, AMD, Intel, Nvidia) on Friday
- Investing.com — Characterization of selloff as rotation rather than breakdown
- Barron’s — PHLX Semiconductor Index 6.5% Monday gain and comparison to May 12, 2025 performance
