U.S. equities rebounded on Monday, June 8, 2026, as semiconductor stocks recovered from a sharp sell-off and geopolitical tensions between Iran and Israel showed signs of easing. The S&P 500 rose 0.7% and the Nasdaq Composite climbed 1.4%, following a volatile Friday that saw significant declines in technology shares.
Why did the stock market rebound?
The recovery was driven primarily by a resurgence in the semiconductor sector. According to CNBC, Micron Technology shares surged 10% on Monday, effectively clawing back a portion of the 13% loss sustained during Friday’s trading session. The iShares Semiconductor ETF also saw a notable recovery, rising 7% after experiencing its worst single-day decline in over six years on Friday. This rebound helped stabilize the broader market, which had been pressured by investor concerns regarding the sustainability of high valuations in AI-linked chip stocks.
How are Middle East tensions affecting markets?
Market sentiment shifted as investors monitored the stability of a fragile ceasefire between Washington and Tehran. While reports indicated that Israel conducted a “large-scale strike on strategic defense systems” on Monday in response to earlier attacks from Iran, according to the IDF’s official X account, President Donald Trump stated that negotiations were proceeding and that the parties were looking to secure an immediate ceasefire. These developments provided a degree of relief to markets that had reacted negatively to the weekend’s exchange of strikes.
What triggered last week’s sell-off?
The sharp decline observed on Friday, June 5, 2026, was largely attributed to a combination of profit-taking in AI-related equities and broader economic anxiety. The Nasdaq Composite dropped 4.2% on Friday, marking its worst performance since April 2025. According to CNBC, investors expressed concern that chip stock valuations had exceeded reasonable levels given the current economic backdrop. This sentiment was exacerbated by a stronger-than-expected May jobs report, which led some market participants to worry that the Federal Reserve might maintain a tighter monetary policy stance for longer than previously anticipated.
Market Performance Overview
The following table summarizes the market movement on Monday, June 8, 2026:
| Index | Monday Change |
| :— | :— |
| S&P 500 | +0.7% |
| Nasdaq Composite | +1.4% |
| Dow Jones Industrial Average | +0.1% |
While U.S. markets showed resilience at the start of the week, the impact of Friday’s sell-off was felt globally. Asia-Pacific markets experienced significant pressure, with South Korea’s Kospi index falling more than 8% and Japan’s Nikkei 225 dropping 3.85% in response to the late-week weakness in U.S. technology shares. European markets, represented by the Stoxx 600, remained marginally lower as investors continued to assess the shifting geopolitical and economic environment.