Dow rises 80 points as chip stocks rebound ahead of Fed minutes, earnings season

• Broadcom and Apple extended their custom chip partnership through 2031, driving a 5.8% gain in Broadcom shares and lifting the broader chip sector after recent weakness
• S&P 500 companies are expected to report 24.4% year-over-year earnings growth in Q2, with Delta and PepsiCo among the first major reporters this week
• Fed rate hike expectations eased following weak jobs data: traders now see only 24% odds of a July rate increase, down from 30% a week earlier

Market Summary: Chip Stocks Drive Market Higher Ahead of Fed Minutes

Market Performance:

U.S. stocks opened higher Monday, with the Dow Jones gaining 83 points and approaching the 53,000 level for the first time, closing at a record high. The S&P 500 rose 0.48% and the Nasdaq advanced 0.87%. All major indexes posted approximately 2% gains last week despite semiconductor weakness.

Key Sector Developments:

Semiconductor stocks rebounded strongly after two consecutive weekly declines for the VanEck Semiconductor ETF (down 3.2% last week). Leading gainers included:

• Broadcom (AVGO): +5.8% following expanded partnership with Apple through 2031 for custom chip development
• Western Digital: +8.6%
• Seagate: +5.7%
• Micron Technology: +1.7%
• Technology Select Sector SPDR ETF: +1%

SK Hynix commenced U.S. trading Monday in a deal expected to raise approximately $28 billion.

Upcoming Catalysts:

Second-quarter earnings season accelerates this week, with Delta Air Lines and PepsiCo reporting soon. S&P 500 companies are projected to post 24.4% year-over-year earnings growth for Q2 (LSEG data).

Federal Reserve June meeting minutes release Wednesday. Rate hike expectations have eased following weak jobs data, with traders now seeing 24% probability of a 25-basis-point July increase, down from 30% previously. Fed Governor Christopher Waller speaks Monday.

Global Markets:

International trading remained mixed. Europe's STOXX 600 declined 0.5%. Asian markets showed varied performance, with Japan's Topix up 0.92% but South Korea's Kosdaq falling 2.46%.