NEW YORK: Wall Street’s main indices advanced Monday as chip stocks bounced back and Iran said it was stopping its latest military operation against Israel – even as Tehran warned it could still issue a response.
The Dow Jones Industrial Average added 0.7% to 51,211.81 while the S&P 500 rose 0.9% to 7,447.95.
The tech-focused Nasdaq Composite Index rallied 1.1% to 26,009.61.
Shares in semiconductor companies climbed, with Micron jumping 8.3% and Nvidia up 1.6%.
Broadcom shares, meanwhile, added 3.2%.
Adam Sarhan of 50 Park Investments believes that “the market overreacted on Friday” with a tech sector sell-off while a solid US jobs report fuelled fears that the Federal Reserve would hike interest rates later in the year.
“Now we have cooler heads prevail, and buyers are showing up and buying the latest dip,” Sarhan added.
Investors also want to believe that “we’re making progress with the Middle East,” he said, as Iran said it was ending its latest military operation targeting Israel.
US President Donald Trump had told both Iran and key ally Israel to stop fighting after exchanges since a shaky ceasefire began, sparking fears of escalation.
Tehran warned that despite its latest announcement of a halt, it could still issue a more crushing response if “acts of aggression and hostility continue.”
For now, the developments have calmed both the oil and Treasury markets, said Patrick O’Hare of Briefing.com in a note.
Markets will also be monitoring US inflation data this week, with the Consumer Price Index due Wednesday.
