Dow up 252 on chip rebound as Mideast tensions ease

U.S. stocks opened higher on Monday. The Dow Jones Industrial Average rose 252 points at the open, the S&P 500 gained about 0.94% and the Nasdaq Composite rose roughly 1.34% after a technology-led selloff at the end of last week.

Semiconductor shares led the recovery after a sector-wide rout on Friday erased about $1 trillion in market value for U.S.-listed chipmakers. Nvidia and Broadcom advanced between about 1.5% and 2.8%, while Micron jumped more than 8% after a 13% fall in the prior session. The iShares Semiconductor ETF rose roughly 4% after its worst daily decline in over six years on Friday.

Last week’s weakness began after Broadcom’s earnings update did not raise its AI-related semiconductor outlook. At the same time, a stronger-than-expected U.S. jobs report for May showed nonfarm payrolls increased by 172,000, above estimates. The CME Group FedWatch tool put the probability of a 25-basis-point rate increase in December at about 42%.

Markets in Asia reacted to the U.S. selloff. South Korea’s Kospi fell more than 8% and Japan’s Nikkei 225 dropped about 3.85% on Monday. Oil prices, which had jumped more than 5% earlier in the session amid geopolitical concerns, pared gains and traded about 1% higher, with West Texas Intermediate near $91 a barrel.

Developments in the Middle East also eased market pressure. Iran’s military reported its first wave of attacks on Israel had ended, and separate accounts indicated Israel paused strikes on Iran after a request from U.S. President Donald Trump. Iranian forces launched strikes on Sunday and warned operations could resume if Israel continued attacks in Lebanon.

Investors are watching upcoming U.S. inflation data for fresh clues about Federal Reserve policy. Market participants are also preparing for the expected public offering of SpaceX, scheduled for later this week.

Volatility last week was concentrated in technology and AI-related stocks; the rebound in chip names on Monday reduced immediate losses.