US Indices Rally on Iran Deal; Tech Bounces; Semiconductors Surge 8%
Key Questions
What triggered the recent rally in US indices?
US indices surged after a deep selloff on news of an Iran deal, with the S&P 500 rising to 7,554, Nasdaq up 3.1%, and the Dow hitting a record. Goldman Sachs raised its S&P target to 8,000 while the Philadelphia Semiconductor Index jumped over 8% amid memory chip shortages.
How did tech stocks and semiconductors perform during the rally?
The Magnificent 7 stocks bounced back, with Intel surging 11% on a Google TPU order. The Philadelphia Semiconductor Index rose more than 8% as memory chip shortages supported the sector.
What caused the rally to cool and reverse on June 18?
The rally cooled on June 17, and on June 18 the S&P 500 fell sharply after Fed Chair Warsh's hawkish press conference, with indices declining on rate hike fears.
What key support level held during the market volatility?
Key support at 7,200 held for the indices amid the initial selloff and subsequent rebound, while the VIX eased during the recovery phase.
What warnings did Morgan Stanley issue regarding AI infrastructure?
Morgan Stanley warned that AI infrastructure leadership may be less durable, even as the broader market extended gains into mid-June.
After a deep selloff, US indices surged on June 11-12 and extended gains into June 15-16. The S&P 500 rose to 7,554, Nasdaq up 3.1%, Dow hit a record. Goldman Sachs raised S&P target to 8,000. The Philadelphia Semiconductor Index jumped over 8% on memory chip shortages. The Magnificent 7 are bouncing. Intel surged 11% on Google TPU order. VIX eased. Key support at 7,200 held. Morgan Stanley warns AI infrastructure leadership less durable. The rally cooled on June 17, and on June 18 the S&P 500 fell sharply after Fed Chair Warsh's hawkish press conference, with indices declining on rate hike fears.