Chip rebound lifts the Dow by 384 points

Good morning. Wall Street snapped a three-day losing streak yesterday, helped by a strong chip rebound that shrugged off worries about Chinese AI. The Dow rose 384 points, or 0.7%. Dip buyers stepped in after last week's sharp drop, and attention turned to the big tech earnings starting this week.

It is too early to relax, though. With the US striking Iran for a tenth straight night, Iran hit a tanker in the Strait of Hormuz and Yemen's Houthis declared a naval blockade of Saudi Arabia. Oil tested new highs before easing a little on talk that mediators are pushing a 10-day ceasefire. Only about 30 ships crossed Hormuz over the weekend, against more than 100 a day before the war.

Warnings piled up too. JPMorgan's Jamie Dimon said he would buy neither stocks nor long-term Treasuries at current prices, pointing to US debt approaching $40 trillion. President Trump put 50% tariffs on some Canadian goods and the trade representative hinted at new tariffs on dozens of countries soon, though much of that was already expected and markets shrugged.

The 10-year Treasury yield slipped to 4.594%. Stocks are up, but margin debt is above $1.5 trillion, so how long this bounce lasts will depend on earnings and oil this week.