NEW YORK — Wall Street rebounded on Monday as investors returned to chip stocks following a sharp selloff late last week, with the Nasdaq Composite and S&P 500 closing higher, market participants said.
The Nasdaq rose about 0.9%, led by gains in technology shares, while the S&P 500 advanced 0.3%. The Dow Jones Industrial Average edged down 0.2%. The Philadelphia Semiconductor Index jumped more than 5%, rebounding from heavy losses on Friday that erased over $1 trillion in market value for U.S.-listed chipmakers.
Major chip stocks posted strong gains. Intel rose about 11% after reports that Google and Nvidia were considering it as a potential backup chip supplier. Marvell Technology climbed more than 9% following its addition to the S&P 500 index. Other names including Micron Technology and Advanced Micro Devices also recovered ground.
The rebound followed concerns over a possible rotation out of the artificial intelligence-driven semiconductor sector, which had powered much of the market’s gains this year. The PHLX Semiconductor Index had posted strong performance earlier in 2026 but faced pressure amid broader market volatility.
Traders cited bargain hunting after Friday’s declines as a key factor. “Investors sought bargains after the sharp selloff,” according to Reuters reporting on market sentiment. The technology sector within the S&P 500 led advancers, rising 1.5%.
The move comes amid ongoing focus on the artificial intelligence boom and semiconductor demand. Worldwide semiconductor revenue has been projected to rise significantly, supporting longer-term optimism despite short-term swings.
Analysts noted that while chip stocks remain volatile, the sector continues to benefit from underlying demand tied to AI infrastructure. No major economic data releases influenced trading on Monday, with focus remaining on corporate developments and sector rotation.
As of Tuesday, markets were monitoring upcoming earnings and economic indicators for further direction. Details on exact trading volumes and the full extent of institutional participation remained subject to later reporting. The rebound helped stabilize broader indexes after recent fluctuations.
Wall Street’s performance reflected continued investor interest in technology and semiconductors despite periodic pullbacks.
