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Tech-Heavy Nasdaq Snaps 3-Day Losing Streak

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Tech-Heavy Nasdaq Snaps 3-Day Losing Streak

The Nasdaq Composite rose Monday following a three-day slump, buoyed by the technology sector's rebound.

The tech-heavy Nasdaq Composite rose 0.9% to 25,929.7, while the S&P 500 added 0.3% to 7,405.5. The Dow Jones Industrial Average lost 0.2% to 50,786.01, closing lower for a second consecutive session. Most sectors were in the red, led by utilities, while tech paced the gainers with a 1.5% rise.

Chipmaker Intel (INTC) climbed 11%, the top performer on the S&P 500, followed by Micron Technology (MU), which jumped 9.9%. Cisco Systems (CSCO) rose 2.1%, the best performer on the Dow. Nvidia gained 1.7%.

The tech sector shed 5.8% on Friday.

"In our view, volatility in technology stocks is likely to continue, although the (artificial intelligence) investment boom appears robust," D.A. Davidson said in a report on Monday. "We continue to expect a broadening of gains supporting sector diversification in portfolios."

Alphabet's (GOOG, GOOGL) Google and Nvidia (NVDA) have turned to Intel as a backup manufacturer for their most advanced processors as Taiwan Semiconductor Manufacturing (TSM) struggles to meet overwhelming demand, The Information reported, citing unnamed sources.

Taiwan Semiconductor shares were up 2.8%.

West Texas Intermediate crude oil was up 0.8% at $91.22 a barrel in Monday late-afternoon trade, while Brent rose 1.2% to $94.22, but both benchmarks were off session highs.

Iran and Israel suspended strikes against each other. However, Tehran vowed to resume attacks if Israel continues to target Iran-backed Hezbollah in Lebanon, according to a CNBC report.

Israel and Iran were looking for an "immediate" ceasefire, US President Donald Trump said Monday.

"Overall, the situation remains fragile, and for the oil market, the status quo holds: global inventories continue to draw, with analysts increasingly convinced that inventories will reach dangerously low levels by the end of June (if not sooner)," Tudor Pickering Holt Analyst Matt Portillo said in a note.

US Treasury yields were higher, with the 10-year rate last up four basis points at 4.56%, and the two-year rate rising 1.9 basis points to 4.17%.

In economic news, US consumers' short-term inflation expectations decreased in May, while the labor market outlook "deteriorated somewhat," a survey by the Federal Reserve Bank of New York showed Monday.

Gold was down 0.2% at $4,358.50 per troy ounce, while silver dropped 0.9% to $68.50 per ounce.

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