Stock Market Rebounds: Semiconductors, Oil, and Steelmakers Drive Indexes Higher
Market news 03 JUN
On Monday, U.S. stock markets posted a confident recovery after early losses, supported by gains in the technology and energy sectors. The major indexes all closed in positive territory: the S&P 500 rose by 0.41%, the Nasdaq 100 added 0.71%, and the Dow Jones edged up by 0.08%.
Recovery Fueled by Semiconductors and Oil Prices
Semiconductor stocks played a central role in lifting the market, as investors turned their attention back to this sector, which continues to benefit from the artificial intelligence boom. Notable gainers included Micron Technology (+4%), AMD, Microchip, Broadcom, Marvell, and AI infrastructure leader Nvidia, which rose more than 1%.
At the same time, oil prices surged by more than 2% to a 1.5-week high, boosting shares of energy companies such as Devon Energy, Occidental Petroleum, Halliburton, and ConocoPhillips.
Protectionism Boosts Steel and Aluminum Stocks
Steel and aluminum producers saw sharp gains following former President Donald Trump’s pledge to double tariffs on imports of these metals. Cleveland-Cliffs and Century Aluminum soared by more than 20%, while Steel Dynamics, Nucor, and Commercial Metals also posted impressive advances.
Lingering Concerns: Trade Tensions and Weak Economic Data
Despite the positive close, the day started with broad-based selling driven by renewed U.S.-China trade tensions. China’s Ministry of Commerce accused the U.S. of unilateral and discriminatory actions, including export restrictions on AI chips, software sales, and student visa bans. These developments raised fresh concerns over inflation and global supply chain disruptions.
Macroeconomic data also disappointed: the ISM Manufacturing Index unexpectedly dropped to 48.5, signaling contraction, while construction spending in April fell 0.4% against expectations of a modest increase.
Fed Commentary Offers Cautious Optimism
The market drew some support from Federal Reserve officials, who expressed willingness to consider rate cuts if inflation continues to decline and the labor market remains stable. However, Fed rhetoric remained cautious—some members emphasized the need for patience, especially in light of rising bond yields (10-year Treasuries climbed to 4.46%).
Top Gainers and Losers
Biggest winners of the day included:
Zscaler (+6%) — following a price target upgrade from UBS.
Moderna (+1%) — after FDA approval of its updated COVID vaccine.
Vera Therapeutics (+66%) — after achieving its Phase 3 trial goal for an IgA nephropathy treatment.
Top decliners included:
Leidos and CDW — down after reports of reduced government tech spending.
General Motors, Ford, and Stellantis — pressured by the threat of higher metal tariffs.
SAIC — dropped 13% after missing earnings estimates.
Global Markets and Commodities
European equity markets closed in the red, while Japan’s Nikkei fell 1.3%. In contrast, commodities rallied: oil prices surged 3%, and gold reached a three-week high. This supported gold mining stocks such as Gold Fields, Newmont, and Freeport McMoRan.
Despite geopolitical tensions and mixed economic signals, the market shows resilience. Investors are favoring technology and commodities while closely watching the Federal Reserve and U.S.-China trade developments.