US sharemarkets recovered on Monday as semiconductor stocks rebounded from Friday’s sharp sell-off and investors took comfort from signs that hostilities between Iran and Israel may be easing.
The S&P 500 rose 0.30% to close at 7,405.73, while the Nasdaq Composite gained 0.86% to finish at 25,929.66. The Dow Jones Industrial Average slipped 80.77 points, or 0.16%, to 50,786.01.
Technology stocks led the recovery after heavy losses at the end of last week. Micron Technology climbed nearly 10% after falling 13% on Friday, while Nvidia and Broadcom also moved higher. Marvell Technology rallied 9.6% after news it would join the S&P 500 from June 22.
The Philadelphia Semiconductor Index rebounded 5.6%, recovering part of Friday’s 10% decline, its sharpest fall in more than six years.
Tesla rose 4.6%, while Apple fell 1.9% after investors reacted cautiously to the company’s latest artificial intelligence announcements.
Markets also continued monitoring developments in the Iran war after fresh strikes over the weekend raised concerns about the stability of the ceasefire. Iran launched missile attacks on Sunday, prompting Israeli retaliation. However, sentiment improved after both sides indicated a willingness to halt further attacks.
President Donald Trump said Iran and Israel were seeking an immediate ceasefire and that negotiations were continuing despite the latest military exchanges.
Markets are also preparing for the public debut of SpaceX later this week, an offering expected to be one of the largest IPOs in Wall Street history and a significant test of investor appetite for high-growth technology companies.
Australian Market Outlook
Australian shares are expected to open higher as a rebound in US technology stocks offsets lingering concerns about geopolitical risks in the Middle East.
S&P/ASX 200 futures are up 23 points, or 0.3%, to 8,533, recovering some of the losses implied by Friday’s sharp sell-off in US technology stocks.
Technology shares may receive support from the recovery across semiconductor stocks overnight.
Investors will also be monitoring domestic economic data, with Westpac’s June consumer confidence survey due at 10.30am AEST and NAB’s May business confidence and business conditions reports scheduled for release an hour later.
Offshore, China will release May trade data, while US trade figures are also due later in the day, providing further insight into the outlook for global economic growth and demand.
