FX.co ★ US Equities Trim Rebound

US equities pared earlier gains to end Monday’s session mixed, as lackluster performance across most sectors was counterbalanced by a renewed surge in semiconductor stocks. The S&P 500 rose 0.5%, while the Nasdaq 100 advanced 1.7%.

Investor sentiment improved after Iran announced it had concluded its military operation against Israel and Tel Aviv indicated it had paused strikes on Iran. The de-escalation pushed energy prices and bond yields down from their intraday highs and supported appetite for risk assets.

Risk-on positioning was further reinforced by upbeat commentary on chip production from Nvidia CEO Jensen Huang, prompting a rotation back into speculative AI infrastructure names after last week’s pullback. Nvidia gained 1.5%, and shares of Micron, Intel, and Applied Materials jumped about 10%.

In contrast, the Dow slipped slightly into negative territory, weighed by persistent concerns over elevated interest rates. AbbVie, Microsoft, and Visa each declined roughly 2%.

Attention now turns to inflation data due later this week, which is expected to show a renewed acceleration in price pressures alongside robust labor-market growth. Such an outcome would likely reinforce market expectations that the Federal Reserve could deliver a rate hike later this year.