Micron Technology surged 1.9% following reports that the memory-chip maker is set to receive over $6 billion in grants from the US Commerce Department for domestic chip factory projects.
Source: Pexels
"Fundamentals will be supportive of chip stocks, but after such a strong rally, it's not unusual to see a bit of profit-taking," said Fiona Cincotta, senior market analyst at City Index.
Source: Pexels
The rebound in chip stocks comes after a more than 3% drop in the Philadelphia Semiconductor Index.
Source: Pexels
Investors are closely watching for further comments from New York Fed President John Williams and Atlanta Fed President Raphael Bostic later in the day.