Dow Lags Behind Chip Rebound as CPI Data Threatens to Derail Rally

The Dow Jones Industrial Average (DJIA) continues to lag behind the broader market's rally, despite a powerful rebound in chip stocks. The DJIA remains near the 50,750 level, while the S&P 500 climbed roughly 0.7% and the Nasdaq jumped approximately 1.3%. Micron led the charge, rebounding close to 10% after falling 13% on Friday.

Friday's session was dominated by chip stocks, with the major semiconductor ETF plummeting 10% and the Nasdaq dropping 4.2% in its worst single-day performance since April 2025. However, Monday brought a sharp reversal, with Micron, Nvidia, and Broadcom driving the Nasdaq higher.

The fragile ceasefire between Iran and Israel remains in place, but tensions are rising again after Iranian missiles were fired on Sunday and Israel responded with a large-scale strike on Iranian defense systems. President Donald Trump has called for both sides to 'immediately stop' hostilities.