Chips crash, then come roaring back 🎢

Welcome back to the Day Trading newsletter 📈

Markets are nursing a whiplash.

Friday's $1.3 trillion chip wipeout flipped to a Monday bounce-back, and now everyone's bracing for Wednesday's inflation report to decide which way the next move goes.

Let’s get into it 👇️ 

📱 Apple unveiled "Siri AI" at its WWDC keynote Monday, a long-promised overhaul of its assistant built in deep collaboration with Google's Gemini models. CEO Tim Cook also announced he'll hand the reins to hardware chief John Ternus in September. Apple shares slipped about 2% as investors weighed whether its late AI push can stick.

🔼 Marvell Technology jumped nearly 10% Monday after news it will join the S&P 500 on June 22. The AI-networking chipmaker and contract manufacturer Flex are replacing Pool Corp and Campbell's in the index's quarterly reshuffle. Index funds that track the S&P now have to buy both names — a built-in tailwind that often lifts new entrants.

🛢️ Oil spiked more than 5% intraday Monday after Iran and Israel traded fresh missile strikes, before easing once Tehran said its military operations were over. Brent crude settled up 1.25% at $94.25 a barrel. The Strait of Hormuz (the chokepoint for roughly a fifth of the world's oil) remains effectively closed amid the standoff.

🤖 Nvidia and South Korea's LG Group announced a sweeping AI partnership Monday spanning data centers, humanoid robots, and self-driving technology. CEO Jensen Huang met LG's chairman in Seoul to seal what Nvidia calls its broadest collaboration yet with a Korean conglomerate. Nvidia shares rose about 1% as the deal reinforced demand for its AI hardware.

🏦 Bank of America told clients Monday it's time to "take profits," with about 70% of its bear-market signals now flashing red. Strategists noted the S&P 500 looks statistically expensive on 17 of 20 valuation measures. The bank's closely watched Bull & Bear gauge held a "sell" signal for a third straight week.

💰️ Michael Saylor's Strategy is buying Bitcoin again, scooping up about 1,550 BTC for roughly $101 million. The reversal comes just over a week after its first sale since 2022 spooked the market. Bitcoin rallied back above $63,000 after dipping below $60,000 last week for the first time since 2024.

🔻 Gold kept sliding Monday, dropping to a two-month low below $4,300 an ounce as "higher-for-longer" rate expectations sap demand for an asset that pays no interest. Friday's hot jobs report and the jump in Treasury yields have erased bullion's gains for 2026. It was a rough turn for what had been the year's go-to safe haven.

The AI chip trade whipsawed investors in the span of one weekend.

On Friday, semiconductors had their worst day in years. The iShares Semiconductor ETF, which tracks the sector, cratered about 10% in its steepest single-day fall since 2020, and the Nasdaq tumbled 4.2% to its ugliest day since April 2025.

The trigger was a soft forecast from Broadcom, whose guidance for next quarter's AI chip sales (about $16 billion) fell short of the roughly $17.2 billion Wall Street expected.

It was a crack in the recent narrative that AI demand only goes up, and a hotter-than-expected jobs report piled on the pain.

All told, chipmakers shed an estimated $1.3 trillion in market value in a single session.

But, on Monday, they came roaring back.

The iShares Semiconductor ETF rebounded nearly 6%, Micron jumped about 10%, and the Nasdaq clawed back 0.86% to close at 25,929.66.

The round trip shows just how concentrated (and jumpy) this market has become.

A single guidance miss from one company can erase more than a trillion dollars because a handful of AI chipmakers now drive the entire index.

The same names that crater on Friday are the ones dip-buyers stampede back into on Monday.

For everyday investors, it means a tech-heavy index fund is riding a rollercoaster powered by a few mega-cap stocks, not a broad economy.

What to watch:

• The bounce faces an immediate test. May inflation data (CPI) lands Wednesday, and a hot reading would revive bets that the Fed's next move is a rate hike, not a cut. That would serve as poison for richly valued growth stocks.

• The Fed also holds its first meeting under new chair Kevin Warsh on June 17, adding another layer of uncertainty.

Was Monday a genuine floor, or just a dead-cat bounce?

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⚠️ Disclaimer: Not financial advice. Do your research before making any trades.