Technology stocks regained some lost ground on Monday after a sharp sell-off wiped around $1 trillion from semiconductor valuations at the end of last week, helping lift the Nasdaq Composite almost 1% as investors returned to AI-linked names.
The recovery came after Friday’s bruising session, when stronger-than-expected US jobs data fuelled concerns that interest rates could remain higher for longer, prompting traders to rotate out of high-growth chipmakers and into more defensive sectors.
Chip stocks were at the centre of Monday’s rebound, with Nvidia rising 2% and Micron surging 9% after Nvidia chief executive Jensen Huang encouraged investors to view the recent pullback as an opportunity rather than a warning sign.
Speaking in Seoul, Huang said investors should be “very happy” with the market decline because it allows them to buy into the artificial intelligence theme at lower prices, adding that the industry remains in its early stages.
While semiconductor shares recovered, Apple moved in the opposite direction. The iPhone maker slipped around 1% after unveiling a revamped AI-powered Siri and new privacy and safety features for iOS 27 during its annual Worldwide Developers Conference in Cupertino.
Investors appeared largely unmoved by the announcements, having spent months anticipating a significant AI update from Apple. The company showcased personalised AI capabilities and improvements designed to deepen integration across its ecosystem, but the reaction suggested many of the developments were already priced into the stock.
Gene Munster of Deepwater Asset Management described the decline as a classic “buy the rumour, sell the news” response, arguing that Apple largely delivered what investors expected. He noted that uncertainty remains over how quickly the company can turn its AI ambitions into products that meaningfully drive growth.
The conference also carried symbolic significance as Tim Cook received a standing ovation during what was his final WWDC appearance as Apple’s chief executive.
Broader market performance was mixed. The S&P 500 gained roughly 0.3% while the Dow Jones Industrial Average edged lower by around 0.2%, reflecting ongoing caution as investors reassess both the outlook for interest rates and the durability of the AI-driven rally.
Outside technology, geopolitical tensions in the Middle East remained firmly on traders’ radar. Oil prices initially climbed after missile exchanges between Iran and Israel threatened a fragile ceasefire, although gains moderated after Iran indicated its military operation had concluded.
Attention now turns to several major events later this week. Oracle’s earnings report on Wednesday is expected to provide fresh insight into corporate demand for AI infrastructure and cloud services, while anticipation continues to build around SpaceX’s planned stock market debut on Friday.
The offering is expected to be the largest IPO on record, with estimates valuing Elon Musk’s rocket, satellite and AI business at approximately $1.8 trillion, making it one of the most closely watched market events of the year.
