The S&P 500 rose 0.4% on June 11 as chip stocks staged a sharp rebound, extending a recovery that began earlier in the week after one of the market’s steepest semiconductor selloffs in years.
The tech-focused Nasdaq Composite surged 1.1% while the blue-chip Dow Jones Industrial Average climbed 0.9%, according to Investopedia. The gains came despite geopolitical tensions and inflation concerns that had sent major indexes down between 1.6% and 2% the previous day.
Semiconductor stocks led the rebound, with shares of Advanced Micro Devices, Marvell Technology, and Micron Technology advancing between 1.5% and 4% after dropping roughly 5% each the day before, Investopedia reported. The rally marked the continuation of a broader recovery in the chip sector that began Monday, June 8, just three days after a historic crash.
On June 5, the semiconductor industry suffered its worst single day since 2020. The PHLX Semiconductor Index plunged 10.26%, erasing approximately $1.3 trillion in market value, according to Reuters. The selloff was triggered by a combination of factors: Broadcom’s cautious guidance on AI chip demand, profit-taking after months of extraordinary gains in semiconductor stocks, stronger-than-expected employment data that raised interest-rate concerns, and a broad rotation from growth stocks to value sectors, according to analysis from Intellectia AI.
The recovery has been swift. On June 8, the PHLX Semiconductor Index surged more than 5%, according to the Wall Street Journal, reclaiming roughly two-thirds of its losses. The Philadelphia Semiconductor Index rebounded sharply, driven by renewed confidence in AI infrastructure spending, according to Investing.com reporting on the June 11 session.
The market news reflects investor appetite for bargains in beaten-down chip stocks. After Friday’s sharp rotation out of semiconductor stocks sent the Nasdaq down more than 1,100 points, traders rushed back into the sector as valuations became more attractive. The rebound also came as oil prices slipped—West Texas Intermediate futures were down 0.8% to $89.25 a barrel—despite geopolitical tensions, suggesting investors were regaining confidence in the economic outlook.
Sources
- Investopedia — S&P 500, Nasdaq, and Dow Jones closing percentages for June 11; semiconductor stock price movements and Oracle earnings impact
- Reuters — PHLX Semiconductor Index decline on June 5, $1.3 trillion market value loss, and broader market context
- Wall Street Journal — PHLX Semiconductor Index recovery on June 8, more than 5% gain
- Intellectia AI — Analysis of June 5 selloff causes: profit-taking, employment data, and sector rotation
- Investing.com — Philadelphia Semiconductor Index rebound driven by AI infrastructure confidence on June 11
