Nasdaq futures surged 218 points Monday morning as semiconductor stocks steadied after a brutal Friday selloff that erased $1 trillion in market value from U.S.-listed chipmakers.
Shares of Nvidia, Broadcom and Micron Technology rose between 1.5% and 3.9% in premarket trading, rebounding from the sharp decline that rattled tech investors.
The recovery came as traders assessed whether last week’s rout—triggered by concerns that Big Tech investments were growing too fast—marked a pause or a deeper correction in the AI-fueled rally.
“We do not expect investors to lose confidence in the AI outlook. Although tech stocks have come under pressure in recent days amid concerns about whether expectations can be met, business fundamentals remain strong.”
Mark Haefele, chief investment officer at UBS Global Wealth Management, made that comment as Wall Street attempted to stabilize.
As of 6:52 a.m. EST, Nasdaq-100 futures jumped 218.25 points, or 0.75%, while S&P 500 futures rose 0.39%. Dow futures edged down 31 points, or 0.06%.
The Friday selloff—the worst day for U.S. stocks since October—was fueled by stronger-than-expected May jobs data that raised odds of a Federal Reserve rate hike. Interest rate futures now imply a 42% chance the Fed will hike rates by 25 basis points in December, according to CME Group’s Fedwatch tool.
Overseas markets continued to bleed Monday. Japan’s Nikkei 225 dropped 4.5%. South Korea’s Kospi slipped 8.2% as Samsung Electronics fell 9.7% and SK Hynix declined 7%.
Meanwhile, crude oil prices surged more than 4% to over $95 a barrel as renewed Israeli strikes on Iran and fresh attacks on Lebanon dashed hopes for a quick end to the wider conflict.
Airline stocks took a hit. Southwest Airlines fell 2.4% as the spike in oil prices raised concerns about higher fuel costs.
In corporate moves, Marvell Technology jumped 6.6% premarket after the chipmaker was set to join the benchmark S&P 500 before trading begins June 22.
Eli Lilly jumped 4.1% after trial results showed its next-generation obesity drug retatrutide reduced sleep apnea severity in addition to boosting weight loss and helping knee pain.
Wednesday’s consumer price report for May could offer fresh insights on how rising energy prices tied to the Iran conflict are impacting inflation.
