Chip rebound lifts S&P 500, South Korea stocks jump on relief rally
Chipmakers helped erase part of Friday’s $1 trillion rout, lifting the S&P 500 and sending South Korean stocks sharply higher as traders bet on a rebound.
A sharp rebound in chip stocks pulled U.S. indexes higher and sent a clear message about how concentrated this market still is: when semiconductors turn, so do the averages. The S&P 500 rose 0.30% to 7,405.73 on Monday, the Nasdaq Composite climbed 0.86% to 25,929.66, and futures pointed higher again early Tuesday, even as the Dow Jones Industrial Average slipped 0.16% to 50,786.01.
The recovery was led by the semiconductor trade. The Philadelphia SE Semiconductor Index jumped 5.6% Monday after Friday’s slide erased about $1 trillion in market value for U.S.-listed chipmakers. Micron Technology rebounded nearly 10% after falling 13.3% on Friday, Intel surged 11.2% on a report that Alphabet’s Google had placed a large chip order, and Nvidia and Broadcom also recovered. Rick Meckler called the move bargain hunting after the selloff, and Art Hogan said the pullback could push investors toward other sectors.
That pattern matters beyond Wall Street. The S&P 500 technology sector gained 1.5% to 1.9%, depending on the market coverage, showing again that a relatively narrow slice of the market can still carry the broader indexes. For retirement accounts and index funds, that concentration cuts both ways: it can lift returns quickly when mega-cap tech is rising, but it also leaves portfolios exposed when sentiment turns on valuations, rates or growth fears.
The rebound also rippled through Asia, where South Korea’s Kospi had fallen more than 8% on Monday before snapping back. On Tuesday, the index jumped 3.5% to 7,743.65, with SK Hynix up 7.7% and Samsung Electronics higher by 3.6%. Japan’s Nikkei 225 rose 1%, Tokyo Electron climbed 7.5%, and Taiwan’s Taiex advanced 2.2%, underscoring how tightly global markets remain tied to the chip cycle.
The relief rally came as Israel and Iran said they had halted attacks after an appeal from President Donald Trump, easing some of the oil-driven fear that flared over the weekend. West Texas Intermediate crude rose 0.84% to $91.30 on Monday and Brent gained 1.25% to $94.25, but the bigger story for investors was simpler: a strong chip bid can still steady a wobbling market, though not necessarily fix the weakness underneath it.
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