Stocks Rally as Buyers Return After AI-Led Selloff

The S&P 500 Index ($SPX) (SPY) today is up +1.01%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.46%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +2.39%.  June E-mini S&P futures (ESM26) are up +1.00%, and June E-mini Nasdaq futures (NQM26) are up +2.40%.

Stock indexes are moving higher today, recovering some of last Friday’s selloff.  Strength in chipmakers and AI-infrastructure stocks is leading the push higher today. Stocks added to their gains today after WTI crude oil prices (CLN26) fell from their highs when Iran said its current military operation against Israel had ended. 

Crude oil prices initially jumped more than +4% today on a flare-up in hostilities between Iran and Israel that threatens to derail a truce and complicate negotiations to end the war.  Israel said it struck several military targets in Iran today, retaliating against missile attacks by Iran, and the Tasnim News Agency reported that Iran said it is prepared for a long-term war with Israel and for strikes on American interests.  However, crude prices gave up most of their gains when Iran signaled an end to its current military operations against Israel, and President Trump said the two sides were looking to agree to an immediate ceasefire. 

The markets are discounting a 3% chance of a +25 bp rate hike at the next FOMC meeting on June 16-17.

Overseas stock markets are mixed today.  The Euro Stoxx 50 fell to a 2-week low and is down -0.02%. China's Shanghai Composite dropped to a 2-month low and closed down -1.70%.  Japan's Nikkei Stock Average slid to a 2-week low and closed down -3.85%.

Interest Rates

September 10-year T-notes (ZNU6) today are down -3.5 ticks, and the 10-year T-note yield is up +1.8 bp to 4.548%.  Sep T-note prices fell to a 2-week low today, and the 10-year T-note yield climbed to a 2-week high of 4.580%.  T-notes have some negative carryover from last Friday’s stronger-than-expected increase in US May nonfarm payrolls and a sharp upside revision to April nonfarm payrolls, bolstering speculation that the next Fed move will be an interest rate increase.  Also, today’s stock recovery has curbed safe-haven demand for T-notes. In addition, supply pressures are bearish for T-notes as the Treasury will auction $119 billion of T-notes and T-bonds this week, beginning with Tuesday’s $58 billion auction of 3-year T-notes.

Losses in T-notes are limited after crude oil prices gave up sharp overnight gains when President Trump said Iran and Israel are “looking to do” an immediate ceasefire. 

European government bond yields are moving higher today.  The 10-year German Bund yield climbed to a 2-week high of 3.073% and is up +2.2 bp to 3.061%.  The 10-year UK gilt yield rose to a 2-week high of 4.958% and is up +3.5 bp to 4.938%.

The Eurozone Jun Sentix investor confidence index rose by +3.0 to -3.4, stronger than expectations of -14.0.

German Apr factory orders fell -3.8% m/m, weaker than expectations of -2.0% m/m.

Swaps are discounting a 100% chance of a +25 bp ECB rate hike at its next policy meeting on Thursday.

US Stock Movers

Chipmakers and AI-infrastructure stocks are staging a modest recovery today following last Friday’s selloff. Intel (INTC) is up +11% to lead gainers in the S&P 500 after the Information reported that Google placed an order with Intel to manufacture three million Tensor Processing Units in 2028. Also, Micron Technology (MU) is up more than +9%, and KLA Corp (KLAC) and Applied Materials (AMAT) are up more than +8%.  In addition, ASML Holding NV (ASML), Lam Research (LRCX), and Sandisk (SNDK) are up more than +6%, and Advanced Micro Devices (AMD), ON Semiconductor (ON), Seagate Technology Holdings Plc (STX), Microchip Technology (MCHP), and Western Digital (WDC) are up more than +4%.  Finally, ARM Holdings Plc (ARM) and Broadcom (AVGO) are up more than +3%, and Analog Devices (ADI), NXP Semiconductors NV (NXPI), and Texas Instruments (TXN) are up more than +2%.

Cryptocurrency-exposed stocks are climbing today, with Bitcoin (^BTCUSD) up more than +3%.  Galaxy Digital Holdings (GLXY) is up more than +7%, and MARA Holdings (MARA) is up more than +4%. Also, Strategy (MSTR) is up more than +3%, Coinbase Global (COIN) is up more than +2%, and Riot Platforms (RIOT) is up more than +1%.

Energy producers and service providers are moving higher today, with WTI crude oil up more than +1%.  Baker Hughes (BKR), SLB Ltd (SLB), and Diamondback Energy (FANG) are up more than +3%, and APA Corp (APA), Halliburton (HAL), and Devon Energy (DVN) are up more than +2%.  Also, Chevron (CVX), ConocoPhillips (COP), Exxon Mobil (XOM), and Marathon Petroleum (MPC) are up more than +1%.  

Cerebras Systems (CBRS) is up more than +17% after Wedbush initiated coverage on the stock with a recommendation of outperform and a price target of $270. 

Marvell Technology (MRVL) is up more than +12% to lead gainers in the Nasdaq 100 after S&P Dow Jones Indices said the company will replace Pool Corp in the S&P 500 before the market opening on Monday, June 22.

Nurix Therapeutics (NRIX) is up more than +7% after Roche agreed to pay the company as much as $2.3 billion for rights to an experimental blood-cancer drug. 

Eli Lilly (LLY) is up more than +3% after presenting positive data for its next-generation shot, retatrutide, to treat obesity. 

Cummins Inc (CMI) is up more than +3% after UBS upgraded the stock to buy from neutral with a price target of $850. 

Voya Financial (VOYA) is up more than +1% after Raymond James upgraded the stock by two notches to strong buy from market perform with a price target of $117. 

Wix.com (WIX) is down more than -4% after saying it expects an approximately $50 million reduction in bookings in 2026 due to a new organizational realignment program and a more pronounced slowdown in the growth of its Partners business, beyond previous expectations.

Cien Corp (CIEN) is down more than -3% to lead losers in the S&P 500 after saying it plans to offer $2 billion in convertible senior notes due in 2031. 

Earnings Reports(6/8/2026)

Campbell's Company/The (CPB), Graham Corp (GHM), Hub Group Inc (HUBG), Mama's Creations Inc (MAMA), Mission Produce Inc (AVO), Motorcar Parts of America Inc (MPAA), Nano-X Imaging Ltd (NNOX), Oil-Dri Corp of America (ODC), Replimune Group Inc (REPL), Vail Resorts Inc (MTN), XCF Global Inc (SAFX).