FX.co ★ US Recover to Close Mostly Flat

US equities mounted a sharp rebound on Monday, finishing close to unchanged after a powerful “buy the dip” wave erased most of the session’s early losses. The S&P 500 closed just below flat and the Dow slipped 0.2%, while the Nasdaq Composite, down as much as 1.6% intraday, ultimately managed to edge into positive territory. Investors rotated back into cash-rich technology leaders such as Nvidia and Microsoft—up 2.9% and 1.5%, respectively—reflecting confidence in their resilience despite the conflict in the Middle East. Defense and energy stocks also provided crucial support, with Northrop Grumman jumping 6% and Exxon Mobil gaining 1.1% as oil prices stayed elevated following the closure of the Strait of Hormuz. Although a surge in the ISM Manufacturing Prices Index to 70.5 rekindled inflation concerns and drove Treasury yields higher, markets largely shrugged off the geopolitical shock. Retail favorites were also in demand, with Palantir rallying 5.8%.