US equities rebound as semiconductors rally and oil prices stabilise
Semiconductor stocks surge following a sharp sell-off, while investors brace for key economic data and the anticipated SpaceX listing.
US stock markets posted gains on Monday, with the Nasdaq Composite leading the advance as semiconductor stocks rebounded from recent sell-offs. The rally occurred despite renewed military strikes between Iran and Israel, which initially pushed oil prices higher before they cooled. Investors are also bracing for upcoming inflation data and the anticipated initial public offering of SpaceX.
The tech-exposed Nasdaq Composite jumped over 1 per cent, peaking at a 1.6 per cent gain before settling at a 1.2 per cent increase. The Dow Jones Industrial Average gained between 0.6 per cent and 0.7 per cent, while the S&P 500 rose roughly 0.8 per cent to 0.9 per cent. The strong start followed a bruising session on Friday, where the Nasdaq dropped 4 per cent and the S&P 500 snapped its nine-week winning streak.
Semiconductor stocks rebounded significantly, with Micron up 9 per cent and Nvidia adding 2 per cent. Marvell shares jumped nearly 9 per cent and Flex gained 4 per cent after being announced as new additions to the S&P 500 index, replacing The Campbell’s Company and Pool Corp. Nvidia CEO Jensen Huang described the recent tech rout as a buying opportunity, stating the AI infrastructure buildout has "just begun."
Oil prices initially flared, with Brent futures climbing as much as 4 per cent to almost US$98 a barrel and West Texas Intermediate nearing US$95, before cooling off to trade around US$94 and US$91 respectively. The volatility followed renewed hostilities between Iran and Israel, which threatened fragile ceasefire negotiations.
International Monetary Fund Managing Director Kristalina Georgieva warned that the world economy must adapt to a new reality of "rolling global shocks" and cited AI development as a key risk. Meanwhile, Nvidia and SK Hynix announced a multi-year agreement to design future generations of memory chips for AI, and Apple is hosting its annual Worldwide Developers Conference, expected to feature a revamped, AI-infused version of Siri.
