A rebound in semiconductor shares lifts the Nasdaq after Friday’s 4.5% drop, but rising crude prices risk sustaining inflation and yields.
The Nasdaq climbed 2% Monday morning, led by a rebound in chip stocks after its steepest weekly decline in over a year. Invesco QQQ Trust (QQQ) erased part of Friday’s 4.5% loss, though the index remains down more than 4% from its June 5 close.
Friday’s selloff followed a stronger-than-expected jobs report, pushing the 10-year Treasury yield to 4.47% and pressuring AI-driven tech valuations. The S&P 500 (SPY) fell 2.5% in the session, while WTI crude neared $96 a barrel amid escalating Middle East tensions.
Despite the recovery, analysts warn elevated oil prices could reignite inflation concerns, keeping yields high and weighing on the AI trade’s momentum. The Nasdaq still holds a 15% year-to-date gain.