US Stocks Surge as Technology Rallies; Iran Ceasefire Supports Market Sentiment

US stock indices closed sharply higher on Monday, with technology shares leading the rally. The S&P 500 rose 1.18%, the Dow Jones Industrial Average gained 0.59%, and the Nasdaq 100 climbed 2.25%. Futures also pointed upward, with September E-mini S&P futures up 1.20% and September E-mini Nasdaq futures rising 2.24%.

Market sentiment improved as the United States and Iran signaled a de-escalation of tensions, agreeing to suspend attacks and resume peace talks, reportedly set to begin in Doha on Tuesday. This diplomatic progress provided support for equities throughout the session.

Energy prices were volatile amid Middle East developments. September WTI crude oil initially surged over 2% on concerns about supply disruptions in the Strait of Hormuz but later retreated after the temporary ceasefire was announced. The volatility lifted inflation expectations, pressuring Treasury yields.

In bond markets, September 10-year T-notes slipped 2.5 ticks, pushing the 10-year yield to 4.374%. European government bonds showed mixed results, with German bund yields rising 0.7 basis points to 2.857% and UK gilt yields falling 1.5 basis points to 4.716%.

Analysts noted a 32% probability of a 25-basis-point rate hike at the Fed’s July 28-29 meeting. Overseas, the Euro Stoxx 50 added 0.16%, while Chinese and Japanese markets rebounded with modest gains.

Tech momentum drove significant upside across semiconductor and artificial intelligence related names. KLA Corp jumped over 11%, and Western Digital and Applied Materials each gained more than 10%. Other notable advancers included Lam Research (+8%), Seagate (+7%), ASML (+4%), AMD, and Marvell (both up 3%+).

Cybersecurity shares also rallied, led by Palo Alto Networks (+9%) and CrowdStrike and Okta (both up 5%+).

Several individual stocks posted strong moves. Iridium Communications surged 25% after Rocket Lab agreed to acquire the company for approximately $8 billion. Roblox gained 14% following an upgrade from Arete Research, while Charter Communications rose 9% on reports of potential partnership discussions with SpaceX.

Axon Enterprise jumped 9% after a reported $5 million personal investment by President Trump ahead of a major contract win with ICE. Viridian Therapeutics gained 5% post-FDA approval of its eye disorder treatment.

Alphabet closed up 4%, leading Dow Jones industrial gains, after announcing AI model access via its cloud platform. Comcast rose 4% on plans to spin off its media division, though the news weighed on telecom peers, sending T-Mobile down 4% and AT&T down 3%.

On the downside,

Copart fell 8% on news its CEO will step down. Verizon dropped 5% following a joint venture deal with BT Group. Martin Marietta Materials and Biohaven each declined 5% on merger news and a downgrade, respectively.

Earnings calendar highlights include releases from Constellation Brands, Nike, and Progress Software scheduled for this week.

Source link