US stocks finished sharply higher on Monday, with the S&P 500 up 1.2%, the Nasdaq 100 surging 2.3%, and the Dow Jones adding 307 points to close at a new record high. The rebound came as investors reassessed the AI-driven trade following the recent selloff. Sentiment was further supported by easing tensions between the US and Iran over the weekend, after President Trump said peace talks with Tehran are set to resume on Tuesday.
Communication services, consumer discretionary, and technology shares led the advance. Alphabet rose 5% on its first session as a Dow component, replacing Verizon. Among other major tech and growth names, Nvidia gained 1.3%, Amazon climbed 3.2%, Meta advanced 2.2%, and Tesla jumped 8.5%. Comcast rallied 4.5% after unveiling plans to spin off its media and technology operations into two separately traded public companies.
In contrast, materials was the weakest-performing sector. Apple slipped 0.7%, Microsoft fell 1.2%, Walmart edged down 0.9%, and Verizon dropped 5.2%.
