U.S. stock indexes climbed on Monday as technology and software shares led gains and investors took support from signs of de-escalation in the U.S.-Iran standoff. The S&P 500 rose about 0.6%, the Dow Jones Industrial Average advanced roughly 0.6%, and the Nasdaq 100 gained about 0.7%, with U.S. stock index futures also pointing higher. Market participants also appeared to weigh the inflation and rates backdrop as crude oil prices moved higher amid earlier Middle East tensions.
Key takeaways
- Price move: The S&P 500, Dow and Nasdaq 100 were all up on the day, led by large-cap technology.
- Catalyst: Stocks found support after the U.S. and Iran agreed to pause attacks and resume talks related to the Strait of Hormuz.
- Rates implication: WTI crude oil rising more than 1% pressured safe-haven demand for Treasuries and fed into inflation expectations.
- Sector split: Software and mega-cap tech advanced, while chip and AI infrastructure names lagged.
What drove the market higher
Broad U.S. indexes extended gains as strength in the “Magnificent Seven” technology complex lifted sentiment across large-cap growth. Amazon, Alphabet, Meta Platforms and Tesla each rose more than 3%, while Microsoft and Nvidia were up more than 1% and Apple gained slightly.
Software stocks also helped offset weakness elsewhere. Palantir Technologies and Atlassian gained more than 4%, with ServiceNow and Datadog up more than 3%. Additional strength spread to other enterprise software names, including Adobe, Intuit, Autodesk and Workday, all higher by more than 2%, and Salesforce up more than 1%.
At the same time, investors drew comfort from a reduction in immediate geopolitical risk. According to the report, the U.S. and Iran backed away from a fresh escalation and agreed to stop attacking each other for now, with talks expected to resume in Doha on Tuesday.
Market reaction: energy, Treasuries and global equities
Oil moved higher despite the temporary pause in hostilities, underscoring how sensitive markets remain to energy-market risk in the Strait of Hormuz. WTI crude rose more than 1% on the day, according to the report, after a series of attacks over recent days that included strikes tied to container-ship and tanker incidents. The report noted that crude had previously pulled back from its best level after the U.S. and Iran agreed to allow vessels to move freely through the strait.
Data and trading pricing pointed to a rates debate that was still being influenced by inflation expectations. The report said markets were discounting a 32% chance of a 25 basis-point rate hike at the next FOMC meeting scheduled for July 28–29.
In U.S. rates, 10-year Treasury futures fell and yields rose. According to the report, September 10-year T-note futures were down while the 10-year yield rose about 1.2 basis points to 4.380%. The report attributed the move to pressure on Treasuries from higher crude oil prices, which can lift inflation expectations, and to reduced demand for safe-haven assets as equities moved higher.
European government bonds were mixed. The report said the 10-year German bund yield was up slightly while the 10-year UK gilt yield fell. In the Eurozone, the report cited an improvement in the June economic confidence indicator and a stronger-than-expected rise in May money supply (M3) on a year-over-year basis. It also said swaps were pricing only a modest probability—around 6%—of a 25 basis-point ECB hike at its next policy meeting on July 23.
Overseas equities were broadly higher. The Euro Stoxx 50 was up slightly, China’s Shanghai Composite rebounded from a two-week low and closed higher, and Japan’s Nikkei-225 ended higher as well, according to the report.
Stock-specific moves: tech leadership and a chip drag
Despite the broad index gains, the report highlighted a divergence inside the market. It said weakness in chipmakers and AI infrastructure names limited upside. SanDisk fell more than 7% to lead declines in the S&P 500 and Nasdaq 100, while Micron Technology and ARM Holdings dropped more than 6% and 5%, respectively. Additional losses included Intel and Marvell (down more than 4%), and Advanced Micro Devices, Seagate Technology and Texas Instruments, each down more than 1%.
Company news and analyst actions also drove notable single-stock moves. Iridium Communications surged more than 22% after Rocket Lab agreed to acquire the company for about $8 billion, or $54 per share, the report said. Charter Communications rose more than 14% after Bloomberg reported the company discussed partnering on a consumer phone offering with SpaceX.
Other high-momentum gainers included Comcast, which the report said rose more than 10% after announcing plans to separate its media businesses from its cable-TV and internet operations. Roblox jumped more than 11% after Arete Research Services upgraded the stock to buy from neutral with a $95 price target, according to the report.
Further notable moves included Axon Enterprise, up more than 8%, after a CNBC report said President Trump bought $5 million of the stock two weeks before the company secured a $220 million ICE contract. The report also cited an FDA approval for Viridian Therapeutics as a reason for its more than 7% rise.
Several analyst-driven revisions were also cited. Methode Electronics gained more than 5% following an upgrade to outperform from market perform, while Inni(o) NV rose more than 3% after BNP Paribas initiated coverage with an outperform rating and a $48 price target. The report said Biohaven fell more than 8% after Bank of America Global Research downgraded it to underperform, and Martin Marietta Materials dropped more than 5% after agreeing to combine with Lhoist North America in a transaction valued at $13.5 billion.
Bigger picture: what investors will watch next
With equities benefiting from a technology-led bid and easing geopolitical risk, the near-term swing factor may be the interaction between energy prices and interest-rate expectations. Investors will likely monitor whether oil’s move translates into renewed pressure on Treasury yields, particularly as market-implied probabilities for future central-bank decisions continue to shift.
Upcoming catalysts include additional corporate earnings expected on June 29, 2026—including AeroVironment, Concentrix and others listed in the report—and continued attention to scheduled policy meetings and economic data releases that can influence rate expectations.
