S&P 500 futures climb 0.34% as chip stocks rebound from selloff

S&P 500 and Nasdaq 100 futures rose Monday as semiconductor shares rebounded from Friday's selloff that erased $1 trillion in market value from U.S.-listed chipmakers.

"We do not expect investors to lose confidence in the AI outlook," said Mark Haefele, chief investment officer at UBS Global Wealth Management. "Although tech stocks have come under pressure in recent days amid concerns about whether expectations can be met, business fundamentals remain strong."

At 7 a.m. in New York, S&P 500 E-minis added 25.25 points, or 0.34%, while Nasdaq 100 E-minis climbed 204.5 points, or 0.7%. Dow E-minis slipped 34 points, or 0.07%. Nvidia, Broadcom and Micron Technology each rose between 1.7% and 3.7% in premarket trading, paring some of Friday's losses that dragged chip stocks to two-week lows. Marvell Technology jumped 7.2% after the chipmaker was set to join the benchmark S&P 500 on June 22.

Friday's selloff was triggered by a combination of factors: Broadcom's underwhelming quarterly results raised concerns that the AI chip sector was growing too fast, while much stronger-than-expected May jobs data prompted traders to price in tighter monetary policy. The CME Fedwatch Tool now shows a 42% probability that the Federal Reserve will raise rates by 25 basis points in December. Goldman Sachs said it expects the central bank to keep rates unchanged through the year and delay cuts until 2027.

The rebound faces a separate headwind from the Middle East. Oil surged above $95 a barrel, gaining more than 4%, after renewed Israeli strikes on Iran and fresh attacks on Lebanon dashed hopes for a quick end to the conflict. The spike pushed shares of U.S. airline operators including Southwest Airlines, United Airlines and Delta Air Lines more than 1% lower in premarket trading on fuel-cost concerns. Wednesday's consumer price report for May will offer investors fresh insight into how rising energy prices are feeding through to inflation.

Eli Lilly advanced 3.1% after trial results showed its next-generation obesity drug retatrutide curbed sleep apnea severity in addition to boosting weight loss and helping knee pain. Flex added 3% after the electronics manufacturer also secured a spot in the S&P 500.

Citigroup became 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. The call follows a record run that has pushed the benchmark index higher this year, though the combination of geopolitical risk and monetary policy uncertainty has clouded the outlook.

The 10-year U.S. Treasury yield edged lower as oil prices retreated from session highs, offering some relief to equity valuations. The direction of the market in the coming sessions will depend on whether semiconductor momentum can outweigh geopolitical fears and hold key technical support levels.

This article is for informational purposes only and does not constitute investment advice.