U.S. stocks started the week with gains as investors shrugged off renewed military strikes between Israel and Iran and returned to buying technology shares after Friday's sharp sell-off. A rebound in semiconductor stocks helped fuel optimism that the artificial intelligence trade still has room to run despite growing concerns over interest rates and geopolitical risks.
The tech-heavy Nasdaq Composite led the major indexes with a gain of roughly 1.6%, while the S&P 500 climbed around 1% and the Dow Jones Industrial Average added 0.3%. The recovery follows last week's rotation out of high-growth technology names, suggesting investors remain willing to buy AI leaders on weakness even as volatility increases.
Market Movers:
- Nurix Therapeutics (NRIX) +22%: Shares soared after the company signed a global licensing and collaboration agreement with Roche worth up to $2.3 billion. The deal includes a $700 million upfront payment and positions Nurix to advance its lead BTK degrader into a Phase 3 trial while expanding development into additional autoimmune indications.
- Intel (INTC) +12%: Shares surged following reports that Alphabet's Google has placed a major custom AI infrastructure order that could utilize Intel's advanced packaging technology for next-generation Tensor Processing Units. The potential partnership strengthens Intel's position in the rapidly expanding AI hardware market and reinforces confidence in its foundry strategy.
- Marvell Technology (MRVL) +8% and Flex (FLEX) +4%: Both stocks moved higher after S&P Dow Jones Indices announced they will join the S&P 500 before trading begins on June 22. Inclusion in the benchmark typically generates significant passive fund buying while adding to the momentum both companies have enjoyed from growing AI infrastructure demand.
- Alvotech (ALVO) +7%: The biotech company gained after the FDA accepted its application for AVT16, a proposed interchangeable biosimilar to Entyvio for ulcerative colitis and Crohn's disease. The regulatory milestone could significantly expand Alvotech's biosimilar portfolio and commercial opportunities.
- Eli Lilly (LLY) +3%: Shares advanced after new late-stage clinical data showed its investigational obesity treatment delivered meaningful weight loss across premenopausal, perimenopausal, and postmenopausal women. The results reinforce Lilly's leadership position in one of the fastest-growing pharmaceutical markets.
- Wix.com (WIX) -9%: Shares fell after the website platform announced a 20% workforce reduction and lowered its 2026 revenue and bookings outlook. While management expects restructuring to generate substantial cost savings and improve free cash flow, investors are focused on slowing business momentum.
Chip Stocks Lead the Recovery
Tech shares returned to favor after suffering heavy losses at the end of last week, with semiconductor companies leading the rebound. Investors appeared encouraged by comments from Nvidia CEO Jensen Huang and other industry leaders suggesting recent weakness represents a buying opportunity rather than the beginning of a broader slowdown.
Intel's rally added to optimism surrounding AI infrastructure spending after reports of a major Google order, while Marvell continued building on recent momentum fueled by its expanding role in AI networking and custom silicon. The strength across the sector suggests investors remain confident that enterprise AI spending will continue supporting chip demand despite concerns about valuations.
Geopolitical Risks Keep Oil Markets on Edge
The market's rebound came despite renewed military exchanges between Israel and Iran that briefly pushed crude oil prices sharply higher. Brent crude approached $98 per barrel before retreating, while West Texas Intermediate traded near $95 as investors monitored the possibility of further disruptions in the region. Although equities largely looked past the headlines, energy markets remain highly sensitive to developments in the Middle East. Sustained increases in oil prices could complicate the Federal Reserve's inflation outlook and increase pressure on policymakers ahead of future interest rate decisions.
Inflation and Earnings Take Center Stage
Investors are now shifting their attention toward Wednesday's Consumer Price Index report, which will provide fresh insight into whether higher energy costs are beginning to filter through to broader inflation measures. Following last week's stronger-than-expected employment data, the inflation reading could significantly influence expectations for monetary policy during the second half of the year. Corporate earnings also remain in focus, with Oracle set to report results this week ahead of what is expected to be the record-breaking SpaceX initial public offering. Both events have the potential to shape investor sentiment toward technology and growth stocks.
Looking Ahead
Wall Street enters the week balancing two competing narratives: continued confidence in the AI investment cycle and growing uncertainty surrounding inflation and geopolitical developments. Semiconductor stocks demonstrated impressive resilience on Monday, but investors will need confirmation from upcoming economic data and corporate results to sustain the rebound.
With inflation data, Oracle earnings, and the highly anticipated SpaceX IPO all on the calendar, markets are likely to remain active over the coming days. If inflation remains contained and AI spending continues to support corporate outlooks, technology stocks could regain leadership even as geopolitical risks keep volatility elevated.