Stock markets recover after Friday's tech-driven sell-off
Wall Street and the TSX bounce back as AI stocks steady. Oil gains on Middle East tensions, while Treasury yields ease slightly.
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North American stock markets clawed back steep losses Monday as investors regained appetite for tech stocks that had been hammered on Friday.
The S&P 500 rose 0.7 per cent after dropping 2.6 per cent Friday — its worst day since October. The Dow Jones Industrial Average was up 0.3 per cent, and the Nasdaq composite climbed 1.1 per cent. On Bay Street, the TSX opened up 0.7 per cent after plummeting 2.3 per cent Friday.
Friday's sell-off had been driven by a strong U.S. jobs report that boosted expectations the Federal Reserve would eventually raise interest rates, combined with a broad pullback in big technology companies. The losses marked the S&P 500's worst day since October 10, when the Trump administration threatened 100 per cent tariffs on Chinese goods.
Semiconductor and memory companies — the real winners of the AI boom — led Monday's recovery. Micron Technology surged 8.3 per cent after sliding 13.3 per cent Friday, the largest loss in the S&P 500. Marvell Technology, which just joined the S&P 500 index, climbed 8.8 per cent in its first trading as part of the index. Both stocks have more than tripled so far in 2026.
The recovery was helped by slightly easing U.S. Treasury yields. The 10-year yield fell to 4.51 per cent from 4.55 per cent late Friday after that U.S. jobs report showed the economy added 172,000 jobs in May — solid employment numbers despite inflation pressures on businesses and consumers.
The data comes two weeks before Kevin Warsh's first policy meeting as chair of the Federal Reserve. Markets widely expect rates to hold steady at the June 16-17 meeting, though President Trump continues pushing for rate cuts.