Technology stocks rebounded on the New York Stock Exchange as bargain-hunting flowed into semiconductor shares following positive news from Intel and Marvell Technology.
The Dow Jones Industrial Average closed at 50,786.01 on Monday, down 80.77 points, or 0.16%, from the previous session. By contrast, the Standard & Poor's 500 index ended at 7,405.73, up 21.99 points, or 0.30%, while the Nasdaq Composite finished at 25,929.663, up 220.231 points, or 0.86%.
Among the largest technology stocks by market capitalization, Nvidia rose 1.73%, while Broadcom (2.82%), Tesla (4.59%), Micron (9.87%), AMD (5.14%), Qualcomm (0.85%), ARM (1.01%) and TSMC (2.80%) also gained. Apple (-1.89%), Microsoft (-1.18%), Amazon (-0.33%), Google parent Alphabet (-1.36%) and Facebook parent Meta (-1.28%) declined.
The New York market showed a rebound from early in the session after Iran and Israel said they would halt their military clashes. Over the weekend, Israel carried out airstrikes on Beirut, the Lebanese capital and a stronghold of the pro-Iranian armed faction Hezbollah. In retaliation, Iran launched ballistic missiles targeting northern Israel. Yemen's pro-Iranian Houthi rebels also fired ballistic missiles at Israel that day. The Houthi rebels had also moved to block the passage of Israeli ships in the Red Sea.
In response, U.S. President Donald Trump posted on his social networking service Truth Social that "Israel and Iran must stop their attacks immediately," claiming that "Israel and Iran are seeking an immediate ceasefire." After the post appeared, both Iran and Israel actually announced they would halt their military operations. However, Israeli Prime Minister Benjamin Netanyahu warned in a video message that "we will suspend airstrikes on Iran for the time being," while adding, "if the terrorist regime makes the mistake of attacking us again, we will respond with overwhelming force."
Positive news for some semiconductor stocks spread warmth across the sector that day. S&P Dow Jones Indices said Marvell, a company that designs custom chips to meet the data center needs of cloud computing firms, had passed profitability requirements and would be added to the S&P 500 index from late this month. Marvell and electronics contract manufacturer Flex will join the S&P 500, while pool equipment distributor Pool and food company Campbell's will be removed. Marvell rose 9.63% on the news.
Intel surged 11.19% on news that Google would produce more than 3 million tensor processing units (TPUs) at the company's foundry, or contract chip manufacturing operation. U.S. information technology outlet The Information reported that Google plans to produce more than 3 million TPUs at Intel's plants by 2028. This is because Taiwan's TSMC alone lacks the production capacity to meet all chip demand amid the AI boom. According to The Information, not only Google but also Nvidia is reviewing whether it can use Intel's technology to create a processor that combines four graphics processing units (GPUs) into a single device.
Nvidia's stock rose after it announced it would expand its cooperation with SK hynix. On this news, the Philadelphia Semiconductor Index rose 5.61% that day.
International oil prices gave back much of their gains on news that Iran and Israel had halted their armed conflict. On the ICE Futures exchange in London, Brent crude for August delivery recorded $94.25 per barrel, up 1.25% from the previous session. On the New York Mercantile Exchange, U.S. West Texas Intermediate (WTI) crude for July delivery closed at $91.30 per barrel, up 0.84%. International oil prices had at one point surged more than 5% during the session on news of Israel's strikes on Iranian petrochemical plants and Iran's retaliatory missile attacks.
