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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Following a week of intense selling pressure, U.S. markets are attempting to regain balance driven by a technical rebound in the technology sector. U.S. stock index futures climbed on Tuesday as the semiconductor sector extended its recovery for a second consecutive session. Additionally, easing hostilities in the Middle East provided support to global market sentiment, reducing geopolitical risk premiums.
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Sign InThis uptick follows a significant sell-off last week where the chip sector lost over $1 trillion in market value, with major players like Nvidia and AMD leading the current bounce per market data. Compared to previous quarter performances, investors remain cautious regarding the sustainability of AI-driven demand, especially as Bloomberg reports indicate hedge funds are beginning to rebuild positions in mega-cap tech following the recent correction.
Technically, markets are waiting for the cash session open to assess the strength of this momentum in the absence of major immediate economic catalysts today. Looking ahead at the economic calendar, traders are focused on upcoming inflation data, while recent figures showed the U.S. Unemployment Rate holding at 4.3% (as of June 5, 2026), keeping the spotlight on the Fed's future policy path.