The S&P 500 rose to 7,326 points on June 11, gaining 0.81% as investors poured back into equities following a sharp rebound in artificial intelligence stocks that began earlier in the week. The market’s recovery was driven by cheaper valuations in the tech sector after a brutal selloff erased roughly $1.4 trillion in market value from AI semiconductor companies the previous week.
Inflation data released on June 10 showed consumer prices rose 4.2% annually in May, marking the highest rate in three years. The reading met expectations and came as energy costs surged due to the Iran conflict, yet the market staged a furious rally starting around the CPI release, suggesting investors interpreted the data as manageable rather than alarming.
The rebound was concentrated in AI and semiconductor stocks, which had suffered steep losses earlier in the week as investors questioned whether the artificial intelligence boom had moved too far, too quickly. On Monday, June 9, the Nasdaq Composite and S&P 500 staged a resilient recovery as cheaper valuations for AI shares lured investors back in, according to Bloomberg. A CNN report noted that market participants viewed the sell-off as “an opportunity to buy some really essential, critical AI infrastructure stocks at cheaper prices.”
The rebound extended into the following day as geopolitical tensions eased slightly. Trump administration officials signaled potential progress on Iran negotiations, which helped reduce concerns about further energy price spikes that had driven the earlier inflation surge. Chip stocks, which led the decline, bounced back as investors rotated back into the sector.
The pattern reflects the broader volatility that has characterized 2026 markets, with AI stocks serving as both the primary driver of gains and the source of sharp pullbacks. The sector’s outsize influence means that shifts in sentiment around artificial intelligence valuations can trigger swift moves across the broader market. Earlier in the year, AI infrastructure stocks had seen 2026 earnings estimates revised higher by more than 50% since December 2024, according to Charles Schwab, underpinning much of the rally before the recent correction.
Sources
- Trading Economics — S&P 500 closing level and daily percentage gain on June 11, 2026
- CNBC — CPI inflation data showing 4.2% annual rate in May 2026
- The New York Times — Inflation report details and market context
- The Washington Post — Inflation hitting 4.2% for first time in three years
- Bloomberg — Stock market rebound details and AI-led recovery narrative
- Intellectia AI — $1.4 trillion in market value erased during AI semiconductor selloff
- CNN — Analyst commentary on cheaper AI infrastructure stock valuations
- Charles Schwab — AI infrastructure stock earnings estimate revisions
