Stocks Rebound Amid Israel-Iran Conflict; Tech Giants Lead Gains

Stocks closed higher on Monday, rebounding from losses as investors monitored developments in the Israel-Iran conflict. The Dow Jones Industrial Average and S&P 500 rose, while the Nasdaq Composite jumped amid reports of Iran’s willingness to negotiate over its nuclear program. This came after heavy fighting between Iran and Israel led to a sharp market downturn the previous week.

Oil prices fell after a surge on Friday due to concerns about disruptions in the Middle East. Before the sell-off, stocks had rallied near record highs on optimism about corporate earnings and economic data. Tech giants like Meta Platforms, Nvidia, and Amazon saw gains, with AMD leading the chip sector rally after analysts upgraded the stock following an “Advancing AI” event.

Airline stocks rebounded from losses, while oil producers and defense contractors declined. Bitcoin prices fluctuated, and Treasury yields rose slightly. Gold futures dipped as investors turned to traditional safe havens amid geopolitical tensions.

In the S&P 500, Estée Lauder saw the biggest daily gain, while aerospace and defense stocks, including Lockheed Martin, experienced declines. Moderna shares fell on concerns about vaccination rates. Palantir Technologies hit a record high, and EchoStar soared after reports of Trump’s intervention to help the company retain valuable spectrum licenses.

MGM Resorts stock surged after raising its outlook for BetMGM, while Roku shares rose on a new partnership with Amazon Ads. Investors remained calm amid Middle East tensions, historically shrugging off geopolitical events unless they impact the real economy.

AMD shares surged after Piper Sandler upgraded the stock post “Advancing AI” event. Sarepta Therapeutics plummeted following the death of patients taking its drug, Elevidys. Meta Platforms climbed as it announced paid advertising on WhatsApp, and US Steel jumped after approval for Nippon Steel’s acquisition.

Boeing shares recovered after a decline on news of an Air India crash, and the Federal Reserve was expected to hold interest rates steady despite pressure from President Trump. The market outlook remains cautious amid geopolitical uncertainties and economic indicators.