Market Recovery Amid Geopolitical Tensions as Tech Sectors Outperform

The S&P 500 Index (+0.65%), Dow Jones Industrial Average (+0.21%), and Nasdaq 100 (+1.59%) rose today, driven by strength in chipmakers and AI-infrastructure stocks. June E-mini S&P futures (+0.70%) and Nasdaq futures (+1.69%) extended gains, following last Friday’s sell-off.

Crude oil initially surged over 4% amid escalating tensions between Iran and Israel after Israel struck military targets in Iran, prompting Iran to signal readiness for prolonged conflict. However, prices retreated as Iran hinted at ending operations and President Trump emphasized a ceasefire. U.S. Treasury bonds rebounded (+1.5 ticks for September T-notes), with yields falling to 4.518% after a June payrolls report raised rate hike speculation, though demand strengthened after the Iran-Israel de-escalation.

Global markets diverged: Euro Stoxx 50 rebounded (+0.13%), while Shanghai (-1.70%) and Nikkei (-3.85%) hit multi-week lows. Eurozone inflation eased, lifting the Jun Sentix index to -3.4, outperforming forecasts of -14.0. German Apr factory orders slumped (-3.8% m/m), and ECB rate hike bets hit 100%.

U.S. Stock Leaders

Micron Technology (+9%) and Intel (+9%) spearheaded tech gains, joined by KLA Corp (+5%), Applied Materials (+5%), and Broadcom (+5%). AMD, NXP, and Analog Devices rose 2-3%, while crypto-linked stocks rallied with Bitcoin (+3%). Galaxy Digital (+7%) and Rigetti Computing (+4%) surged, though Wix.com (-7%) fell on booking revisions and Cien (-4%) dropped after a $2B note offer.

Earnings updates included Campbell Soup (CPB), Graham Corp (GHM), and Vail Resorts (MTN). Disclosure: Rich Asplund held no positions at publication.

Disclaimer: Views are the author’s alone. Barchart Disclosure Policy applies.

Source link