The S&P 500 climbed on Monday as semiconductor stocks rebounded from last week's sharp selloff, and Polymarket traders are betting the benchmark index will build on those gains at Tuesday's open.

The S&P 500 rose 0.30% to close at 7,405.73 on Monday, recovering some ground after Friday's tech-driven rout triggered by a hotter-than-expected May jobs report. The June 9 Polymarket contract implied an 89% probability that the index will open higher on Tuesday.

Why That Number Matters

Investor sentiment improved after chip stocks staged a strong rebound from Friday's sell-off, easing concerns that the artificial intelligence-driven rally was losing momentum.

Markets are also closely monitoring developments in the Middle East after Iran halted military strikes against Israel while warning that hostilities could resume if Israeli operations in Lebanon continue.

Oil prices remained elevated, with West Texas Intermediate crude settling up 0.84% and Brent crude rising 1.25% on Monday, underscoring lingering geopolitical risks.

Investors will also watch fresh economic data on wholesale inventories, existing home sales and small business sentiment due Tuesday.

The Bull Case

Technology stocks once again provided leadership, with shares of Micron Technology (MU) surging nearly 10% after Friday's steep decline. Nvidia (NVDA) and Broadcom (AVGO) also moved higher as investors returned to semiconductor names.

The broader market continues to be supported by resilient corporate earnings, consumer spending and capital expenditure trends, according to market strategists.

Still, geopolitical uncertainty also remains elevated as ceasefire efforts between Iran and Israel continue to face setbacks, while renewed conflict could push energy prices higher and reignite inflation concerns.

Additionally, the public debut of SpaceX later this week is being viewed as a potential test of investor sentiment after an extended market rally.

S&P 500 futures were up 0.35% early Tuesday.

How The Previous Bet Played Out: The S&P 500 opened Monday at 7,440.57, above Friday's close of 7,383.74, meaning the June 8 Polymarket bet resolved "Up." The contract recorded approximately $96,992 in traded volume before settling.