Wall Street opened sharply higher on Monday, with the Dow Jones Industrial Average climbing approximately 271 points, as signs of de-escalation between the United States and Iran restored risk appetite. The S&P 500 gained 0.82%, while the Nasdaq Composite advanced 1.31%, buoyed by a recovery in technology shares after last week's steep losses.
A U.S. official indicated Sunday that Washington and Tehran would step back from hostilities, raising hopes that an interim peace agreement signed earlier this month could hold. The two sides also agreed to allow commercial vessels to transit the Strait of Hormuz freely, following a weekend of military exchanges that had threatened negotiations. While diplomatic progress reassured investors, concerns persist over the potential for renewed conflict to disrupt global energy supplies.
Technology Stocks Recover After Sharp Selloff
Technology shares attempted to regain ground after a difficult week that saw the S&P 500 lose nearly 2% and the Nasdaq Composite drop about 4.6%, as investors rotated into defensive sectors. Semiconductor stocks and the so-called Magnificent Seven had come under particular pressure.
Apple shares rose 1% in trading, recovering from a 4.8% decline last week. The company raised iPad and MacBook prices on Thursday, citing higher memory and storage chip costs driven by the artificial intelligence industry's expanding data center investments. Chipmakers also traded higher, with Marvell gaining 1.8%.
RBC Capital Markets raised its 12-month target for the S&P 500 to 8,150 from 7,900, citing earnings strength and favorable market conditions. The second-quarter earnings season, set to begin in the coming weeks, is expected to provide the next major test for equities. "The 21% S&P 500 return over the past 12 months has been driven entirely by earnings, making the upcoming Q2 2026 reporting season an important catalyst for the forward trajectory of the market," said Ben Snider, chief U.S. equity strategist at Goldman Sachs, in a Reuters report.
Corporate Developments Drive Individual Stocks
Comcast shares jumped about 8% after the company announced plans to separate NBCUniversal and Sky into an independent publicly traded company through a tax-free spinoff. The separation is expected to be completed in about a year.
SpaceX gained roughly 4% after Nasdaq announced the newly listed company would be added to the Nasdaq-100 index on July 7. In other corporate news, Martin Marietta Materials fell 6.11% after announcing a $13.5 billion merger with limestone supplier Lhoist North America. Viridian Therapeutics climbed 6.65% after the U.S. Food and Drug Administration approved its treatment for thyroid eye disease.
Investors also remained focused on monetary policy expectations. Traders are pricing in at least one Federal Reserve interest rate hike this year to contain inflation, with upcoming U.S. jobs data expected to influence those expectations. Oil prices edged higher as markets assessed whether the pause in hostilities between the United States and Iran would hold.
For more on market dynamics amid geopolitical shifts, see our coverage of Dow Gains 70 Points as SK Hynix's $26.5B Nasdaq Listing and Iran Tensions Drive Caution and Currency Markets Mixed as US-Iran Tensions Keep Investors on Sidelines.
This article is for informational purposes only and does not constitute financial advice.
