AI selloff cools, and chip rebounds carry Monday’s market back toward risk appetite

U.S. stocks moved higher on Monday, June 8, 2026, after Friday’s sharp selloff in AI-linked equities left many chip and infrastructure names trading at low levels for the start of the week. Reuters reported that S&P 500 and Nasdaq 100 e-minis climbed in early trading as chip stocks “steadied” after dropping to over two-week lows, while renewed strikes in the Middle East kept investors cautious. The rebound helped shift focus from price momentum toward near-term catalysts across semiconductors, data center supply chains and even pharmaceuticals.

The broader selloff that preceded Monday’s bounce was linked to worries about whether expectations for AI growth had become too aggressive. In a Reuters report on Friday, U.S.-listed chipmakers lost more than $1 trillion in market value, with the PHLX semiconductor index down almost 8.5% in afternoon trading. Reuters also tied the shock to weak demand indicates after Broadcom posted results earlier in the week that showed demand for its custom AI chips business falling short of lofty expectations. Broadcom fell 7.5% on Friday, and Nvidia, Micron Technology and AMD posted steep declines as well.

On Monday, chip stocks largely reversed course in premarket trading, according to Reuters. Shares of Nvidia, Broadcom and Micron Technology rose between 1.5% and 3.9% before the open, rebounding from Friday’s drop. Reuters said 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 pull back after a strong run in 2026. Strategists at UBS Global Wealth Management were quoted emphasizing that investors did not expect a loss of confidence in the AI outlook even as tech expectations faced scrutiny.

The rebound also reflected company-specific drivers outside pure AI-chip demand. An AP report said Micron Technology rose sharply on Monday after sliding 13.3% on Friday, and Marvell Technology climbed following its first trading day after S&P Dow Jones Indices said it had gained enough to join the widely followed S&P 500. AP characterized the broader theme as a market trying to determine whether Friday’s drop marked the beginning of a downturn or a pause that shakes out excessive optimism, with price action in chip and memory stocks acting as the clearest barometer.

Corning, a supplier of optical components used in high-capacity communications, gained ground on Monday after news tied it more directly to data center buildouts. AP reported Corning climbed 6.2% after Amazon announced a multibillion-dollar deal in which Corning will produce optical fiber, cable and other products for Amazon data centers across the United States. For investors, the move suggested incremental confidence that the optical and connectivity supply chain remains a beneficiary of AI infrastructure spending even as parts of the semiconductor market cool.

Eli Lilly was the outlier on the day’s “stocks explaining the tape” list, rising on a development unrelated to semiconductors. Reuters said Eli Lilly shares jumped 4.1% after trial results for retatrutide, an investigational next-generation obesity drug, showed improvements beyond weight loss. Reuters reported the study found retatrutide helped curb sleep apnea severity and also eased knee pain, at least in the reported trial outcomes. The reaction underscored how, when markets de-risk, investors often look for narrative support from major clinical data as well as from AI-adjacent industrial demand.

Broadcom entered Monday’s trading with extra sensitivity to expectations, even beyond market-wide rate worries. Broadcom describes itself as a global technology company that designs and supplies semiconductor and infrastructure software solutions, with products spanning networking, broadband, cybersecurity and private and hybrid cloud infrastructure. In the Reuters reporting on Friday’s selloff, the key concern was not the company’s long-term position in AI infrastructure, but the near-term demand announcement reflected in its custom AI chips performance. What remained unclear from the reports was the magnitude and breakdown of the shortfall, as well as whether any incremental demand visibility was provided after Friday’s close. The next test for the market, according to Reuters, was Wednesday’s consumer price report for May, which could further influence expectations for Federal Reserve policy.

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