Broader Market Settles Higher as Chipmakers Rally

The S&P 500 Index ($SPX) (SPY) on Monday closed up +0.30%, the Dow Jones Industrial Average ($DOWI) (DIA) closed down -0.16%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +1.58%.  June E-mini S&P futures (ESM26) rose +0.18%, and June E-mini Nasdaq futures (NQM26) rose +1.44%.

Stock indexes settled mixed on Monday, recovering some of last Friday’s selloff.  Renewed enthusiasm for artificial intelligence boosted chipmakers and AI-infrastructure stocks, lifting the broader market higher on Monday.  Stocks also found support on Monday after WTI crude oil prices (CLN26) fell from their highs when Iran said its current military operation against Israel had ended.  Apple fell by more than -1% to weigh on the Dow Jones Industrial Average after receiving a tepid response to the next generation of its AI platform.

Crude oil prices initially jumped more than +4% on Monday 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 settled mixed on Monday.  The Euro Stoxx 50 fell to a 2-week low and closed unchanged.  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) on Monday closed down -1.5 ticks, and the 10-year T-note yield rose +1.8 bp to 4.548%.  Sep T-note prices fell to a 2-week low on Monday, and the 10-year T-note yield climbed to a 2-week high of 4.580%.  T-notes were pressured by 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, Monday’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 were limited as inflation expectations eased after crude oil prices gave up sharp overnight gains when President Trump said Iran and Israel are “looking to do” an immediate ceasefire.  The 10-year breakeven inflation rate fell to a 1.5-month low of 2.452% on Monday.

European government bond yields moved higher on Monday.  The 10-year German Bund yield climbed to a 2-week high of 3.073% and finished up +2.2 bp to 3.060%.  The 10-year UK gilt yield rose to a 2-week high of 4.958% and finished up +4.0 bp to 4.943%.

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 staged a modest recovery on Monday following last Friday’s selloff.  Intel (INTC) closed up more than +11% to lead gainers in the S&P 500 and Nasdaq 100 after the Information reported that Google placed an order with Intel to manufacture three million Tensor Processing Units in 2028. Also, KLA Corp (KLAC) closed up more than +9%, and Micron Technology (MU) and Applied Materials (AMAT) closed up more than +8%.  In addition, ASML Holding NV (ASML) and Lam Research (LRCX) closed up more than +6%, and Sandisk (SNDK) and Advanced Micro Devices (AMD) closed up more than +4%.  Finally, ON Semiconductor (ON), Seagate Technology Holdings Plc (STX), and Microchip Technology (MCHP) closed up more than +3%, andWestern Digital (WDC), Broadcom (AVGO), and Texas Instruments (TXN) closed up more than +2%.

Cryptocurrency-exposed stocks rallied on Monday as Bitcoin (^BTCUSD) rose more than +2%.  Galaxy Digital Holdings (GLXY) closed up more than +20%, and MARA Holdings (MARA) closed up more than +11%.  Also, Coinbase Global (COIN) closed up more than +6%, Strategy (MSTR) closed up more than +5%, is up more than +2%, and Riot Platforms (RIOT) closed up more than +4%.

Energy producers and service providers moved higher on Monday as WTI crude oil rose nearly +1%.  Baker Hughes (BKR), SLB Ltd (SLB), APA Corp (APA), and Halliburton (HAL) closed up more than +3%, and Diamondback Energy (FANG) closed up more than +2%.  Also, Devon Energy (DVN) is up more than +2%, and Chevron (CVX), ConocoPhillips (COP), Exxon Mobil (XOM), Marathon Petroleum (MPC), and Valero Energy (VLO) closed up +1% or more.  

Cerebras Systems (CBRS) closed up more than +18% after Wedbush initiated coverage on the stock with a recommendation of outperform and a price target of $270. 

Marvell Technology (MRVL) closed up more than +9% 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) closed up more than +6% after Roche agreed to pay the company as much as $2.3 billion for rights to an experimental blood-cancer drug. 

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

Voya Financial (VOYA) closed up more than +2% after Raymond James upgraded the stock by two notches to strong buy from market perform with a price target of $117. 

Wix.com (WIX) closed down more than -7% 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) closed down more than -4% after saying it plans to offer $2 billion in convertible senior notes due in 2031.

Apple (AAPL) closed down more than -1% as the market was unimpressed by the company’s next generation of its artificial intelligence platform, as many features are similar to capabilities unveiled earlier.

Earnings Reports(6/9/2026)

Casey's General Stores Inc (CASY), J M Smucker Co/The (SJM), SailPoint Inc (SAIL).