US stocks advanced on Monday, extending last week’s rebound amid renewed optimism that a Middle East peace deal could stabilize energy supplies from the region. The S&P 500 and Nasdaq 100 edged higher, while the Dow Jones Industrial Average climbed more than 200 points.
Iran reported significant progress in recent talks with the US, with both sides said to be targeting a peace agreement within two months. Energy commodity prices fell further on expectations of improved supply, though Treasuries found little support as markets continued to price in a hawkish Federal Reserve stance following last week’s policy meetings.
Chipmakers prolonged their historic rally, with Micron and SanDisk each gaining about 5%. In contrast, major AI hyperscalers lagged, with Amazon, Oracle, and Meta all losing more than 2% on worries over surging AI-related capital expenditures. SpaceX also dropped 5% after announcing a new bond issuance, though the stock remains roughly 40% above its IPO level. Meanwhile, AbbVie rose 1% after agreeing to acquire Apogee Therapeutics in an all-cash transaction valued at $10.9 billion.
