06/08 U.S. stock markets, semiconductors soar on easing Middle East risks, mixed on WWDC disappointment and interest rate burden

The U.S. stock market started higher as risk mitigation and price stability flowed in due to the Middle East’s declaration of the end of military operations before the start of the market and a slowdown in short-term expected inflation. However, although the rise was reduced due to the continued profit-taking sales, the rise was expanded mainly in the semiconductor industry due to the influx of backlash buying focused on resolving uncertainties as the surge in oil prices subsided. Meanwhile, Apple’s (-1.89%) WWDC content showed fluctuations and changes, and as government bond rates expanded their gains ahead of the release of the consumer price index (Wednesday) before the market closed, the index closed with a contraction or a shift in gains (-0.16%; Nasdaq +0.86%; S&P 500 +0.30%; Russell 2000 +0.77%, Philadelphia Semiconductor Index +5.61%)

*Variants: Middle East Anxiety and Mitigation, New York Fed Finds Consumer Expectations Survey, Apple’s WWDC
Israel strikes southern Beirut on Sunday (7 June). In response, Iran fired missiles at mainland Israel over the weekend and Monday, and Israel used its air force to launch airstrikes on central Iran, including Tehran and Isfahan, and other military and strategic infrastructure despite U.S. President Trump’s request for restraint. Brent crude oil surged more than 5 percent due to concerns over Israel’s attack on the Iranian mainland and the resulting collapse of the agreement to reopen the Strait of Hormuz. As a result, Asian stock markets, especially South Korea, plunged more than 8 percent, on top of fears over inflation and supply chain instability following Friday’s slide in U.S. markets. In addition, even Houthi rebels warned of a complete ban on Israeli-linked ships in the Red Sea and missile strikes, fueling Asian stock markets to fall

Amid this situation, strong pressure from the U.S. and the declaration of the end of the fast-track operation were announced and stabilized. U.S. President Trump strongly pressured Netanyahu to immediately halt armed conflict and cease-fire, saying, “Both sides have already exchanged each other once,” and warned Netanyahu that “the U.S. will not help if Iran attacks.” Oil prices have risen sharply as the U.S. willingness to intervene has been confirmed. The Iranian Revolutionary Guard declared that it will end its military operation against Israel, and Israeli Prime Minister Netanyahu also announced that the Iranian attack has been suspended for now. U.S. stocks rise as worst-case scenario of Iran-Israel mainland attack turns to dialogue

The New York Fed’s Consumer Expectations Survey (SCE) data shows a mixed picture in terms of prices. Short-term price stability is underway with one-year expected inflation falling 0.18 percentage point to 3.46 percent from 3.64% in the previous month. Three-year expected inflation also fell 0.02 percentage point to 3.13 percent, but five-year expected inflation rose 0.01 percentage point to 3.02 percent. Eventually, short-term inflation has improved, but long-term inflation anxiety following macroeconomic and fiscal issues remains high

In terms of the economic outlook, households’ income slowdown is intensifying amid intensifying job insecurity and domestic instability. The figure that the unemployment rate will be higher in a year fell 0.74%p to 43.17%, but it is still far above the 40% range and anxiety over the job market continues. Households’ expectations for income growth in a year are 2.82% (-0.02%p), which slows expectations for income improvement. Eventually, it shows that households’ actual fundamentals are shrinking despite external growth in the asset market due to the strong stock market.

Meanwhile, Apple’s WWDC 2026 is also attracting attention. In WWDC 2026, Apple revealed its Al strategy, which the market focused most on, rising more than 3 percent during the day. In particular, it introduced “Analytic Siri,” which understands the content and context of a user’s screen and performs complex commands across multiple apps, and integrates Apple’s intelligence across operating systems (iOS 27), including Safari browsers, searches, and photo editing. It also highlights the direction of its unique AI platform by presenting an open architecture that can utilize multiple LLMs including Google Gemini without sticking to a specific AI model. As a result, Apple rose while Alphabet fell by -1.20 percent.

However, Apple’s stock price has returned all the gains and turned downward after halfway through the announcement. Investors paid attention to the functions of next-generation Siri, but analysts say that it remained at the level of implanting existing Generative AI technology into the ecosystem. Above all, the disappointment is that there was no strong hardware catalyst or new Al monetization model that could immediately trigger demand for smartphone replacement amid stagnant real income of households. On top of that, when it was confirmed that some key AI functions will not be introduced immediately this fall and will be released in stages, and that there will be differences in the timing of rollout by country, the perception that it is difficult to be reevaluated as a winner has spread.

*Featured Stocks: Micron, Tesla Up Vs. Apple, Alphabet And Other Big Tech Downs

Semiconductors: What Causes Friday’s Surge and What’s Up Today
Analysts say that the sharp drop in the semiconductor sector in the U.S. stock market on Friday was affected by the sharp opening of sales worth about $55 billion on Friday alone in the leveraged ETF market, which had inflows of more than $225 billion in liquidity. This is believed to have recorded a sharp drop due to market makers’ pressure on short gamma positions. On top of that, as the RSI has entered an extreme overheating phase, with the RSI reaching 83, it is estimated that the Fed’s desire to raise interest rates has expanded and adjusted as a result of the employment report makes a comeback.

However, as Iran-Israel issues stabilized after the weekend clash, technical backlash buying flowed in as the adjustment did not mean the end of a long bull market for the semiconductor sector. As a result, semiconductor storage companies such as Micron (+9.87 percent), SanDisk (+5.30 percent), Western Digital (+2.97 percent), Seagate (+3.46%) and semiconductor equipment companies such as Ram Research (+6.98 percent), AMAT (+8.64 percent), ASML (+6.54%) and KLA (+9.27 percent) have risen sharply. Of course, the desire to realize profits from soaring profits is still ongoing, and hyperscalers owe debt to capitalize