Nasdaq 100 Rebounds 2.5% as Micron Rallies 8% on Ceasefire Hopes
U.S. equity futures rebounded sharply, with Nasdaq 100 futures gaining 2.5% and S&P 500 futures up 1.3%, as an Iran-Israel ceasefire announcement eased geopolitical tensions. Semiconductor stocks led the recovery, with Micron up 8%, Intel up 13%, and Corning soaring 9%, partially offsetting Friday's $1 trillion market value wipeout. Goldman Sachs withdrew its forecast for two Fed rate cuts, while CME FedWatch Tool markets fully priced in a 25-basis-point hike by year-end.
*this image is generated using AI for illustrative purposes only.
U.S. stocks staged a sharp premarket rebound as chip stocks bounced from Friday's rout and President Donald Trump pushed to hold together a fragile Israel-Iran ceasefire. Futures on the Nasdaq 100 rose 2.5%, clawing back part of Friday's 4.8% plunge, which was the index's worst session since the tariff-driven selloff of April 2025. Micron Technology Inc. jumped more than 8% in premarket trading, leading the recovery among major technology stocks.
Geopolitical De-escalation
Iran's armed forces announced an end to military operations against Israel, warning of "harsher" attacks if Israel resumes strikes on Lebanon. The cessation followed Trump's statement that Israel and Iran are looking to do an "immediate ceasefire," with a U.S. naval blockade of Iranian ports remaining in full force until a final deal is reached. Iran had fired nearly 30 ballistic missiles at Israel since Sunday evening, while Israel struck Beirut and targeted western and central Iran earlier in retaliation.
Futures Performance Update
The table below captures the movements across major U.S. equity futures contracts:
| Index Futures | Change |
|---|---|
| Nasdaq 100 Futures: | +2.5% up |
| S&P 500 Futures: | +1.3% up |
| Russell 2000 Futures: | +2% up |
Futures on the Nasdaq 100 rallied to 29,500 points, while contracts on the S&P 500 were up 1.3% to 7,460 points. Russell 2000 futures rose 2% to 2,875 points, recovering after falling over 3% on Friday.
Chips Lead The Bounce
Micron paced a broad semiconductor recovery, up roughly 7% from Friday's sharp 13% collapse. Intel Corp. climbed 13%, Corning Inc. soared 9%, Super Micro Computer Inc. climbed 6%, and Sandisk Corp. and Seagate Technology Holding plc each added about 5%. Friday's rout had erased about $1 trillion in market value as semiconductors reversed and a stronger-than-expected May jobs report stoked bets that the Federal Reserve's next move could be a hike.
The table below highlights the premarket performance of key semiconductor and technology stocks:
| Stock | Premarket Change |
|---|---|
| Micron Technology Inc.: | +8% (premarket); ~+7% recovery |
| Intel Corp.: | +13% |
| Corning Inc.: | +9% |
| Super Micro Computer Inc.: | +6% |
| Sandisk Corp.: | ~+5% |
| Seagate Technology Holding plc: | ~+5% |
Market Outlook
West Texas Intermediate crude eased to around $91.31 a barrel, sliding sharply from overnight peaks near $95.40 as the war premium drained, though still up about 1.2% on the day. The U.S. Dollar Index slipped 0.16% to 99.63. Goldman Sachs economist David Mericle scrapped his prior call for two Fed rate cuts this year and now expects none, while money markets tracked by the CME FedWatch Tool are fully pricing in a 25-basis-point hike by year-end.
Will the nascent ceasefire hold long enough to sustain the current market rebound, or is a resurgence in volatility likely?
How will the shift in market expectations toward a potential Federal Reserve rate hike impact the recovery trajectory of growth-heavy tech stocks?
Is the sharp rebound in semiconductor stocks a sustainable recovery or a 'dead cat bounce' following Friday's $1 trillion market value loss?
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