By Sruthi Shankar and Twesha Dikshit
June 8 (Reuters) – U.S. stock indexes were set to open higher on Monday, as chipmakers rebounded from a sharp selloff last week, while investors took comfort from signs of cooling tensions in the Middle East.
Shares of Nvidia, Broadcom and Micron Technology rose between 1.7% and 3.7% premarket, rebounding from a sharp selloff on Friday that wiped out $1 trillion in market value for U.S.-listed chipmakers.
Expectations of tighter monetary policy and underwhelming results from Broadcom last week had raised concerns that the sector was growing too fast, prompting traders to retreat after a strong run this year.
“Sometimes these moves get too far too fast and you need a bit of a pullback. And, that pullback is likely going to find investment in other sectors,” said Art Hogan, chief market strategist at B Riley Wealth.
Further helping the mood, Iran’s military announced that its first wave of attacks on Israel since a ceasefire in April was now over. Israel has halted strikes on Iran at the request of U.S. President Donald Trump, a senior Israeli official was cited as saying by Channel 12.
Attacks between the two countries had pushed up oil prices by more than 5% earlier on Monday. Crude prices were last up less than 2%. [O/R]
By 08:26 a.m. ET, S&P 500 e-minis were up 57.25 points, or 0.77%. Nasdaq 100 e-minis added 415.75 points, or 1.43% and Dow e-minis edged up 144 points, or 0.28%.
Much stronger-than-expected jobs data for May also contributed to Friday’s rout, as traders priced in interest rate increases this year. Pricing in interest rate futures implies a 42% chance that the Federal Reserve will hike rates by 25 basis points in December, per CME Group’s Fedwatch tool.
Wednesday’s consumer prices report for May could offer investors fresh insights on how the rise in energy prices due to the Iran war is impacting inflation.
Citigroup was the latest brokerage to raise its 2026-end target for the S&P 500 to cross the 8,000 mark, citing corporate earnings resilience and AI-driven growth.
Relentless optimism around AI has aided Wall Street’s recent record run, but lingering concerns over the economic impact of the Iran war have clouded investor sentiment.
Marvell Technology jumped 8.7% with the chipmaker set to join the benchmark S&P 500 before the start of trading on June 22. Flex added 4.3% after the electronics manufacturer also secured a spot.
Eli Lilly advanced 1.9% after the drugmaker’s trial results showed its next-generation obesity drug retatrutide curbed sleep apnea severity in addition to boosting weight loss and helping knee pain.
(Reporting by Sruthi Shankar and Twesha Dikshit in Bengaluru; Editing by Devika Syamnath)
