Chips Rally, Iran Ceasefire, and a Big Earnings Week Ahead

US Market: Chips Bounce Back

Semiconductor stocks drove a sharp rebound on Monday. NVDA and INTC led gains as AI-linked shares resumed their run. Intel and Micron were among the session's biggest winners. Options flow confirmed the bullish tilt — call positioning in chips has been building all week. NVDA's short interest remains low at 1.26% of free float. Bears are not pressing the trade.

That said, insider filings tell a more cautious story. NVDA director Mark Stevens filed $221M in share sales on June 2 and 4. Silver Lake filed $255M in DELL stock on June 4 and 5. The Walton Trust trimmed WMT by $184M. Big money on the inside is locking in gains even as prices push higher.

Geopolitics: Iran Ceasefire in Focus

Oil jumped after Iran missiles threatened the fragile Middle East ceasefire. Traders fear fresh escalation could return the region to all-out conflict. The moves added uncertainty to energy markets just as European drivers were already cutting fuel consumption. Eurozone fuel sales posted their biggest year-on-year drop since October 2023.

Europe: Defense Rallies on Ukraine Deal

European stocks slid broadly but defense names bucked the trend. Ukraine ratified a $105 billion EU loan deal, lifting defense sector shares. UK paint maker AkzoNobel soared after rejecting a $14.5 billion takeover bid.

Earnings: Oracle and Adobe in the Spotlight

Wednesday brings ORCL Oracle's Q4 results — the $615 billion cloud giant with just 2.1% short interest. Thursday, ADBE Adobe follows. Bears are more cautious on Adobe, with 4.8% SI. Both reports will test whether AI spending promises translate into revenue.