FX.co ★ US Equities Bounce Back

US equities advanced on Monday, supported by signs of a cautious de-escalation in the Middle East and a pause in last week’s selloff in semiconductor stocks. The S&P 500 rose 0.8%, the Nasdaq 100 gained 1.5%, and the Dow added 0.4%.

Iran indicated it had concluded its military operation against Israel following weekend strikes, while President Trump expressed optimism about progress toward a deal with Tehran. This helped ease fears that further escalation could derail ongoing negotiations to end the conflict. In turn, energy prices and Treasury yields trimmed their earlier rebound, providing an additional tailwind for equities.

At the same time, speculative positioning around the AI-driven economy re-emerged after last week’s sharp pullback in chipmakers triggered by Broadcom’s earnings. Nvidia climbed 2%, while Micron and Marvell each jumped more than 4%, with Marvell slated to join the S&P 500 later this month. Investor focus on AI infrastructure and data center spending will be tested again on Wednesday evening when Oracle reports earnings; its shares closed 2% higher.