June 8 (Reuters) – S&P 500 and Nasdaq futures climbed on Monday, as chip stocks steadied after plunging to over two-week lows, though renewed strikes in the Middle East kept investors largely at bay.
Shares of Nvidia, Broadcom and Micron Technology rose between 1.5% and 3.9% premarket, rebounding from a sharp selloff on Friday that wiped out $1 trillion in market value for U.S.-listed chipmakers.
Expectations of tighter monetary policy and underwhelming results from Broadcom last week raised concerns that the sector was growing too fast too quickly, prompting traders to retreat after a strong run this year.
“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.”
By 06:07 a.m. ET, S&P 500 e-minis were up 25.75 points, or 0.35%. Nasdaq 100 e-minis added 200.75 points, or 0.69% and Dow e-minis dipped 47 points, or 0.09%.
Much stronger-than-expected jobs data for May also contributed to Friday’s rout, as traders priced in interest rate increases this year. Interest rate futures pricing implies a 42% chance that the Federal Reserve will hike rates by 25 basis points in December, per CME Group’s Fedwatch tool.
Wednesday’s consumer prices report for May could offer investors fresh insights on how the rise in energy prices due to the Iran war is impacting inflation.
Crude prices rose more than 4% to more than $95 a barrel as renewed Israeli strikes on Iran and fresh attacks on Lebanon soured hopes of an imminent end to the wider war. [O/R]
Shares of U.S. airline operators including Southwest Airlines and Southwest Airlines fell 2.4% each as the spike in oil prices raised concerns about higher fuel costs.
Marvell Technology jumped 6.6% premarket as the chipmaker was set to join the benchmark S&P 500 before the start of trading on June 22.
Eli Lilly jumped 4.1% after the drugmaker’s trial results showed its next-generation obesity drug retatrutide curbed sleep apnea severity in addition to boosting weight loss and helping knee pain.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Devika Syamnath)
