On Monday, U.S. stocks advanced, recovering much of the decline from the prior session. This was largely due to market reconsiderations regarding the potential global economic impacts stemming from the Israel-Iran conflict. The S&P 500 and the Dow Jones Industrial Average both rose approximately 1%, while the technology-centric Nasdaq 100 increased by more than 1.2%. Although hostilities between Tehran and Tel Aviv continued following reciprocal strikes, reduced concerns about the involvement of allies or disruptions to global energy supplies supported an improved risk sentiment.
From a macroeconomic perspective, the Federal Open Market Committee (FOMC) is anticipated to maintain interest rates this week. The Summary of Economic Projections (SEP) will reveal the extent to which uncertainty surrounding fiscal policies and tariffs is influencing their policy approach.
Technical stocks led the market gains, with Meta and Tesla both appreciating by 3%, while Palantir climbed by 4%, bolstered by a focus on military investments. Additionally, U.S. Steel surged up to 5% after the formal approval of Nippon Steel's $14.1 billion acquisition by President Trump. Roku also experienced an 11% increase, following its announcement of a new collaboration with Amazon Ads.
