US stocks rise as tech, chipmakers rebound after Friday selloff

U.S. equities largely moved higher Monday as market participants rotated back into technology and semiconductor sectors. The Nasdaq index led the gains, with chipmakers emerging as particular beneficiaries of the buying opportunity created by Friday's selloff. The recovery reflected investor appetite to pick up assets at reduced valuations following the prior session's decline.

Geopolitical developments provided additional support for market sentiment, according to reports. The announcement indicated that Iran and Israel had ceased hostile actions, reducing uncertainty that had weighed on investor confidence. This de-escalation appeared to ease concerns about broader regional tensions affecting global markets and oil prices.

Within the technology sector, performance proved mixed. Apple shares eased despite announcements regarding AI upgrades to its product lineup, suggesting investors may have already priced in expectations around artificial intelligence enhancements. Conversely, Intel surged following reports of a substantial order from Google, signaling renewed demand in the semiconductor industry.

Broader market context underscores why this reversal matters for traders. Tech and semiconductor stocks typically lead in risk-on sentiment environments when geopolitical fears recede and investors regain appetite for growth-oriented equities. Monday's rebound suggests the sector may be stabilizing after Friday's pressure. The mixed individual stock performance—Apple's decline despite AI news versus Intel's surge on corporate demand—highlights that sector-wide recoveries can mask divergent fundamental stories. Investors monitoring inflation-sensitive technology valuations and semiconductor supply-demand dynamics should note this shift in risk appetite.

Source: Markets-Economic Times