US stocks rise: Nasdaq rebounds 1% after worst day in more than a year

The main U.S. stock indices opened with growth on Monday, June 8 - the securities of chip manufacturers began to recover after a sharp decline last week, writes Reuters. In addition, investors were encouraged by signs of easing tensions in the Middle East: Iran said it had completed the military operation against Israel, which began the day before. And Tel Aviv in turn promised not to strike Iran - at the request of U.S. President Donald Trump, a senior Israeli official told Israel's Channel 12.

Against this background, the broad index of American shares S&P 500 rose by 0.92% in the first minutes of trading. Technology Nasdaq Composite, which on Friday collapsed by more than 4%, showing the largest decline for the day since April 2025 - on Monday, June 8, on the contrary, jumped by 1.16%. The Dow Jones blue-chip index added 0.63%. Last trading session, June 5, all three of these major U.S. stock indices finished near their intraday lows.

The dynamics on Monday was supported, among others, by the shares of Nvidia, Broadcom and Micron Technology, which also began to recover after a sharp fall on Friday (it then collapsed the market capitalization of U.S. chip manufacturers to $1 trillion, writes Reuters).

Oil prices fell on June 8 from intraday highs: August futures for Brent are adding about 2% - trading at $94.82 per barrel (during trading on Monday they jumped to more than $98). Contracts for WTI with delivery next month cost about $92 per barrel - rising by 1.58% against the previous close.

The VIX volatility index, also known as the "fear on Wall Street" index, collapsed more than 13% on Monday to 18.67 points. It jumped above 20 during the session, a level that indicates heightened volatility in the market.

Last week's selloff in U.S. stocks, among other things, was fueled by expectations of tighter monetary policy in the U.S., as well as Broadcom's unrealized forecasts for revenue from AI chips for the quarter and year, recalls Reuters. All this has raised concerns among investors about the "too fast" growth of the technology sector, the agency notes (thus, the Nasdaq Composite, even taking into account Friday's collapse, has risen almost 12% since the beginning of 2026, while the S&P 500 has added more than 8% over the same period). "Sometimes the market goes too far too fast - and that's when you need a little correction," commented B Riley Wealth chief market strategist Art Hogan. - And the capital that comes out during this correction is likely to find use in other sectors," he added (quoted by Reuters).

Citigroup analysts are also optimistic about the prospects of the U.S. stock market: on June 8, they raised the target for the S&P 500 at the end of 2026 above 8000 points (this target implies growth of the index by almost 8% relative to the previous close). In their forecast, the bank's analysts cited the sustainability of corporate profits and growth driven by the development of AI.

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