US stock markets opened higher on Monday evening, Beijing time. The technology sector rebounded after a difficult week of trading. Investors are also weighing the impact of a pause in hostilities between the United States and Iran.
The Dow Jones Industrial Average rose 152.42 points, or 0.29%, to 52,028.53. The S&P 500 Index gained 38.02 points, or 0.52%, to 7,392.04. The Nasdaq Composite Index advanced 192.588 points, or 0.76%, to 25,490.206.
Following significant market volatility in the tech sector last week, traders are closely monitoring the performance of US technology stocks on Monday.
Technology shares including Arm, Marvell, and Intel were broadly higher.
SpaceX is in focus after Nasdaq announced last week that the satellite company owned by Elon Musk will be fast-tracked for inclusion in the Nasdaq 100 index next month.
Meanwhile, shares of Comcast surged after the company announced it would spin off its media and technology businesses into two separate, publicly traded companies. The separation is expected to be completed in about a year.
The market continues to monitor the latest developments in US-Iran relations. The US and Iran reached an agreement on Sunday to pause hostilities and allow commercial vessels free passage through the Strait of Hormuz. This followed a military exchange between the two sides the previous weekend, which had threatened the negotiation process aimed at ending the conflict.
"Technical talks on all areas of the memorandum of understanding will continue as scheduled," a US official told media on Sunday. "Both sides will now exercise restraint, and ships can pass freely."
The US conducted strikes on Iranian military targets over the weekend in retaliation for Iranian attacks in the Strait of Hormuz. Subsequently, former US President Donald Trump posted on Truth Social, threatening to "eliminate Iran," stating: "US aircraft just struck Iranian missile and drone storage sites and coastal radar sites that violated the ceasefire agreement—again!"
Oil prices rose at the start of the week as traders assess whether the pause in hostilities can be sustained and if it will ease concerns about energy supply disruptions. Brent crude rose 0.67% to $72.47 per barrel. West Texas Intermediate crude futures gained 1.2% to $70.06.
"Both sides, particularly the US, appear unwilling to resume full-scale hostilities. While there is potential for accidental or unplanned escalation, the overall process is likely still moving towards continued de-escalation," said Adam Crisafulli of Vital Knowledge.
Wall Street just concluded a mixed week, characterized by a rotation out of technology stocks and into other sectors.
The S&P 500 and Nasdaq Composite fell nearly 2% and 4.6% last week, respectively, with Nvidia and Alphabet both dropping more than 8%. Meta Platforms, Apple, and Amazon each fell more than 4%, while SpaceX plunged 17%.
The Dow Jones Industrial Average, which has less exposure to technology stocks, bucked the trend by rising 0.6%. Merck and Johnson & Johnson led the gains for the 30-component benchmark index, rising 13% and 11.5% last week, respectively.
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