Semiconductor Stocks Remained Under Pressure After Friday's Route

Barry Adams
08 Jun, 2026
New York City

Wall Street indexes attempted to rebound in early Monday's trading, following a sharp selloff on Friday, and volatile crude oil prices jumped amid renewed hostilities in the Middle East. 

The S&P 500 Index increased 0.3%, and the tech-heavy Nasdaq Composite advanced 0.6% as investors searched for bargains after a steep decline in AI names. 

Nvidia, Micron, Marvell Technology, SanDisk, and Broadcom plunged between 3% and 11% in Friday's trading after the U.S. nonfarm payrolls advanced at a faster-than-expected pace in May. 

The increase in May's payroll supported the case for higher-for-longer interest rates and stoked fears of a rate hike as early as the next policy meeting ending on Wednesday, June 17.

The U.S. economy added 172,000 net new jobs in May, the jobless rate held at 4.3%, and the annual wage growth eased to 3.4% from 3.6% in the previous month, according to the latest update released by the U.S. Bureau of Labor Statistics. on Friday. 

The change in total nonfarm payroll employment for March was revised up by 29,000, from 185,000 to 214,000, and the change for April was revised up by 64,000, from 115,000 to 179,000. 

With these revisions, employment in March and April combined is 93,000 higher than previously reported, the BLS report noted. 

The resilient job market confirmed that the elevated AI investment and upcoming sports events are supporting the employment growth in the leisure and entertainment and professional trades. 

However, the recent increases in job growth are likely to fade in the second half, and economists are still estimating nonfarm payrolls to expand by less than 1.7 million, below the long-term average of 2 million. 

Asian markets closed down following a global rout in tech stocks, and benchmark indexes in Japan dropped nearly 4%, in South Korea decreased 8.3%, and in India and Hong Kong eased 1%. 

Markets in Europe struggled to advance on Monday, after losing between 1% and 2%, as investors soured on AI names amid valuation worries following a rally over the last ten weeks. 

Crude oil prices rebounded in New York and London after Iran, Israel, and the U.S. exchanged fire in the Middle East. 

West Texas Intermediate crude oil prices advanced 1.5% to $91.88 a barrel, and the international Brent crude oil prices jumped 1.5% to $94.45 a barrel. 

Investors are increasingly focused on the commercial shipments through the Strait of Hormuz, as China and Japan struggle to refill the rapidly depleting crude oil inventories and Europe sources jet fuel from the U.S.-based refineries.