The S&P 500 and Nasdaq are rising: the market was buoyed by a rebound in chipmaker stocks

Major U.S. stock indices opened higher following the long weekend marking Independence Day in the United States. Investors returned to the market in a buying mood—particularly for tech stocks, which have recently shown volatile performance, according to The Wall Street Journal.

Against this backdrop, the broad U.S. stock index, the S&P 500, rose 0.3% in the first minutes of trading, the tech-heavy Nasdaq Composite rose 0.6%, and the “blue-chip” index initially gained 0.2%, reaching a new intraday record high, as noted by CNBC; but then slipped slightly into negative territory—losing 0.05% at the time of publication.

Overall, technology stocks posted gains on Monday: for example, the State Street Technology Select Sector SPDR ETF (XLK), which focuses on such stocks, rose nearly 2%—largely due to an 8% increase in Western Digital’s stock price. The Philadelphia Semiconductor Index, which tracks chipmakers, soared nearly 4%. Specifically, SanDisk shares jumped 5%, Micron Technology shares rose more than 2%, and Intel shares gained 3.3%, rebounding from last week’s sell-off.

The VIX volatility index, also known as the “Wall Street fear index,” is rising slightly: it has gained 0.37% to 16.2 points (readings above 20 indicate heightened market volatility).

Oil prices have stabilized at pre-war levels in Iran, amid an agreement by OPEC+ members to raise production targets and the resumption of traffic through the Strait of Hormuz, Reuters reports. Brent for September delivery is trading at $72.12 per barrel, while August WTI contracts are at $68.67—roughly the same levels as at the last close.

Spot gold is down 1% to $4,134.7 per ounce, while spot silver is down 1.3% to $61.6.

“The broadening of sector rotation is a very positive sign,” said Mark Newton, head of technical strategy at Fundstrat, commenting on the dynamics in U.S. stock markets (as quoted by CNBC). Last week, offsetting the consolidation in the semiconductor sector, stocks in the financial, healthcare, and industrial sectors hit new weekly record highs, he noted. “Although the decline in the semiconductor sector [was] a short-term trend, it did not undermine the momentum of the broad indices,” the analyst added.

Goldman Sachs noted last week, however, that despite the recent sell-off in chipmaker stocks, “momentum [in the market] remains highly concentrated” (as quoted by Bloomberg). Even then, however, analysts were beginning to observe “the first signs of buying on dips”—a strategy that had already paid off earlier this year.

Over the past five days, Micron Technology, the largest memory chip manufacturer in the U.S., has lost more than 10%, and the Philadelphia Semiconductor Index has slipped into negative territory after rallying more than 80% since the start of the year. Analysts attributed this development to capital rotation, as well as investors taking profits following the impressive rise in chipmakers’ stocks this year.

This article was AI-translated and verified by a human editor