US Stocks Rebound as Iran Eases Military Operations; Tech Shares Lead Wall Street Recovery

U.S. stocks opened sharply higher on Monday, recovering from last week’s steep market decline as investors reacted positively to reports that Iran had ended its military operations against Israel. The development helped ease geopolitical concerns and boosted risk appetite across Wall Street.

Shortly after the opening bell, the S&P 500 climbed 0.9% to 7,444.80, while the Nasdaq Composite gained 1.1% to 25,993.64. The Dow Jones Industrial Average also advanced 0.7% to 51,198.79. Market sentiment improved as traders weighed easing Middle East tensions, a rebound in technology stocks, and the implications of a stronger-than-expected U.S. jobs report.

The rally followed a difficult session on Friday when the S&P 500 suffered its biggest daily loss of 2026, falling 2.6% and snapping a nine-week winning streak. Technology shares were among the hardest hit, with the Philadelphia Semiconductor Index plunging more than 10% after disappointing earnings results from Broadcom raised concerns about the pace of growth in the artificial intelligence sector.

However, semiconductor stocks recovered on Monday, with Broadcom, Nvidia, and Micron posting gains during early trading. Investors appeared willing to re-enter growth sectors as geopolitical risks temporarily eased.

According to Iran’s state-run Fars news agency, Tehran announced the conclusion of its military operations against Israel. The statement followed a fresh exchange of strikes between the two countries that threatened a fragile ceasefire negotiated earlier this year. Despite renewed hostilities, U.S. President Donald Trump indicated that ongoing diplomatic efforts with Iran would continue.

Oil markets remained closely watched as Brent crude rose 0.8% to $93.90 per barrel. Prices stayed elevated due to continued disruptions around the Strait of Hormuz, a critical shipping route for global energy supplies. Higher oil prices have increased concerns that inflation could accelerate, potentially prompting central banks, including the Federal Reserve, to maintain a tighter monetary policy stance.

Investors are now awaiting upcoming U.S. consumer and producer inflation reports for further clues on interest rate expectations. Among individual stocks, Southwest Airlines and Delta Air Lines edged lower amid concerns over fuel costs, while Eli Lilly gained after positive clinical trial results for its next-generation weight-loss treatment demonstrated benefits for obesity, knee pain, and sleep apnea.