On Monday, U.S. stocks displayed an upward trajectory, fueled by optimism surrounding diminishing geopolitical tensions, which buoyed investor confidence. Meanwhile, attention shifted towards the Federal Reserve's upcoming policy announcement scheduled for Wednesday, with a prevailing market consensus that interest rates will likely remain steady. The S&P 500 advanced by 0.9%, the Dow Jones Industrial Average increased by 317 points, or 0.7%, and the Nasdaq Composite surged by 1.4%, recovering from the significant losses recorded on Friday.
Investor sentiment improved following reports suggesting Iran's willingness to de-escalate hostilities with Israel and to re-engage in nuclear dialogue, conditional on the U.S. abstaining from military actions. The rally was primarily driven by gains in the technology and consumer discretionary sectors, with standout performances from Meta (up 2.9%), Palantir (up 3%), and Tesla (up 1.2%). Conversely, energy stocks experienced declines as oil prices fell nearly 2%.
In other notable market developments, U.S. Steel saw a 5.1% rise following President Trump's official endorsement of Nippon Steel's acquisition of the company for $14.1 billion. Additionally, Roku soared by 10.4% after announcing a new advertising collaboration with Amazon Ads.
