Chip Stocks Surge 15% as Nasdaq 100 Rebounds From Friday’s Rout; SpaceX IPO and Apple AI Loom Large

The Nasdaq 100 staged a sharp reversal on Monday, clawing back nearly 3% after a brutal selloff wiped almost 5% from the tech-heavy index just two sessions earlier. With the benchmark recapturing 29,610 points, the mood has brightened considerably — but the catalysts driving this recovery are as much about macro relief as they are about company-specific fireworks.

The Philadelphia Semiconductor Index, which hemorrhaged $1 trillion in market value and slid 10% on Friday, led the charge higher. Chip stocks that had been pounded in the selloff rebounded aggressively, with Marvell Technology surging 15.1% on news of its impending addition to the S&P 500, Intel jumping 12.3% following reports that Google ordered 3 million of its TPU chips, and Micron Technology climbing 11.1% after a 13.3% decline. Corning added 9.31% on a multi-billion-dollar deal with Amazon, while Broadcom rose 3.9% as the sector stabilized. Nvidia itself edged up just 1.44%, but its chief executive, Jensen Huang, called the recent pullback a clear buying opportunity.

The turnaround was aided by a de-escalation in geopolitical tensions. Reports of a potential end to Iranian military operations against Israel and renewed calls for an immediate ceasefire pushed WTI crude oil from $95.40 to around $91.31 per barrel, relieving a key source of market anxiety. The VIX, Wall Street’s fear gauge, fell to 18.53, and the yield on the 10-year U.S. Treasury note eased to 4.51% after hitting 4.54% on Friday. That spike had been triggered by unexpectedly strong U.S. jobs data, which dashed hopes for near-term rate cuts.

Should investors sell immediately? Or is it worth buying NASDAQ 100?

Indeed, monetary policy remains a heavy counterweight to tech euphoria. The CME FedWatch Tool now prices in a 42% to 43% probability of a rate hike by December 2026. Goldman Sachs has already ruled out any cut this year, penciling in the first move lower only in 2027. This tension between AI-driven enthusiasm and the reality of higher-for-longer interest rates is defining the market’s current phase.

On the charts, the Nasdaq 100 has climbed back to within 3.74% of its recent peak and now stands 14.34% above its 200-day moving average. The relative strength index (RSI) rebounded to 53.0 from Friday’s deeply oversold reading of 42.2, indicating neutral territory. Traders are eyeing the 30,750-point zone as the next major resistance, while support in futures trading held at 28,730. A more immediate floor lies near 28,870, with the 50-day moving average at roughly 28,235 providing a deeper backstop.

Looking ahead, the week is packed with potential market-movers. Apple kicks off its Worldwide Developers Conference on Monday, where investors expect a comprehensive AI strategy — including a souped-up, generative-AI-powered Siri — to be unveiled. On Wednesday, the consumer and producer price indices will test the inflation narrative. Then on Friday, all eyes will turn to SpaceX’s planned initial public offering, which, with a valuation of $1.8 trillion, is drawing $75 billion in institutional capital and could set the tone for the entire tech sector. Until then, the 30,750-point level stands as the next hard hurdle.