US stocks rebound after Friday AI chip slump

U.S. stock markets stabilized on Monday, June 8, recovering some of the steep losses from Friday's selloff, as shares of companies central to the artificial intelligence boom rebounded. The S&P 500 rose 0.3 percent, the Dow Jones Industrial Average dipped 0.2 percent, and the Nasdaq composite climbed 0.9 percent. Friday's decline of 2.6 percent for the S&P 500 was its worst single-day performance since October.

Leading the recovery were semiconductor and memory companies whose stocks had plunged Friday amid concerns that AI-driven euphoria had pushed valuations too high. Micron Technology rose 9.9 percent after a 13.3 percent drop on Friday, resuming a run that has seen its stock more than triple in 2026. Marvell Technology climbed 9.6 percent in its first trading session after it was announced the company would join the S&P 500 index. Marvell's stock has also more than tripled this year, aided by a 32.5 percent surge last week following a comment from Nvidia CEO Jensen Huang at a conference in Taiwan suggesting Marvell could become a trillion-dollar company.

Critics point to such market reactions as evidence that AI stocks are overheating. While chip companies are experiencing...