Nasdaq 100 jumps 2.1% as chip stocks rally on ceasefire hopes
US markets rallied on Monday, with the Nasdaq 100 jumping 2.1% as tech stocks rebounded on hopes of a ceasefire between Iran and Israel. Intel Corp. surged 13.1% on reports of potential interest from Alphabet Inc. and Nvidia Corp. as a backup manufacturer. The S&P 500 gained 0.8%, while the Dow Jones Industrial Average rose 0.2%.
*this image is generated using AI for illustrative purposes only.
US stocks rallied on Monday, led by a 2.1% surge in the Nasdaq 100, as signs of de-escalation in the Middle East sparked a broad relief rally. The rebound was driven by technology and semiconductor stocks, which recovered from last week's selloff after President Donald Trump stated that Israel and Iran were looking to do an immediate ceasefire. Iran's armed forces confirmed they had ended military operations, while Israeli Prime Minister Benjamin Netanyahu said Israel was holding fire for now but reserved the right to self-defense.
The S&P 500 rose 0.8% to 7,440, and the Dow Jones Industrial Average edged up 0.2% to 50,958. Treasury yields eased from session highs but stayed elevated, with the 10-year yield slipping to 4.56% after touching 4.58% earlier. Markets are pricing roughly a 52% chance of a Fed rate hike by October and nearly 70% by December, following Friday's jobs report which showed 172,000 payrolls added versus 85,000 expected.
Major Indices Performance
| Index | Last | % Change |
|---|---|---|
| S&P 500 | 7,440.41 | +0.8% |
| Dow Jones | 50,957.50 | +0.2% |
| Nasdaq 100 | 29,564.79 | +2.1% |
| Russell 2000 | 2,870.54 | +1.3% |
Chip Stocks Lead the Rally
The Technology Select Sector SPDR Fund (NYSE: XLK) led all groups with a 3.1% gain as semiconductors rebounded. Intel Corp. (NASDAQ: INTC) surged 13.1% after The Information reported that Alphabet Inc. (NASDAQ: GOOGL) and Nvidia Corp. (NASDAQ: NVDA) are considering Intel as a backup chip manufacturer. Other chip stocks also posted strong gains, including Micron Technology Inc. (NASDAQ: MU) jumping 11.0%, KLA Corp. (NASDAQ: KLAC) up 10.3%, Applied Materials Inc. (NASDAQ: AMAT) gaining 9.2%, and Lam Research Corp. (NASDAQ: LRCX) rising 8.4%.
Top Gainers and Losers
Marvell Technology Inc. (NASDAQ: MRVL) was the top gainer in the Russell 1000, rising 13.4%, followed by Intel Corp. at 12.4%. Newell Brands Inc. (NASDAQ: NWL) gained 12.2%. On the downside, BellRing Brands Inc. (NYSE: BRBR) fell 8.6%, while Guidewire Software Inc. (NYSE: GWRE) dropped 6.2%.
Commodities and Crypto
WTI crude rose 1.0% to $91.41 a barrel, while Brent climbed 1.6% to $94.62. Gold was little changed, ticking up 0.2% to $4,339 an ounce. Bitcoin (CRYPTO: BTC) rose 0.8% to above $63,000 after a 4% gain on Sunday.
How sustainable is the current rally in tech and semiconductor stocks if geopolitical tensions in the Middle East flare up again?
What impact will the stronger-than-expected jobs report have on the Federal Reserve's upcoming interest rate decisions?
Could Intel's potential partnership with Alphabet and Nvidia mark a turning point for the company's competitive position in the chip market?
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