U.S. stocks ended sharply higher, with the Dow closing at a new all-time high, as tech stocks rebounded and tensions between the United States and Iran eased over the weekend, helping the broader market rally. The S&P 500 and Nasdaq also ended in positive territory.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) jumped 0.6% or 306.63 points, to end at 52,182.74 points.
The S&P 500 gained 1.2%, or 86.41 points, to finish at 7,440.43 points. Tech communication services and consumer discretionary stocks were the biggest gainers.
The Information Technology Select Sector SPDR (XLK) gained 1.7%. The Communication Services Select Sector SPDR (XLC) jumped 3.1%, while the Consumer Discretionary Select Sector SPDR (XLY) gained 2.7%. Six of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq advanced 2.1%, or 522.53 points, to close at 25,820.14 points.
The fear gauge, the CBOE Volatility Index (VIX), was down 4.13% to 17.65. Advancers outnumbered decliners on the NYSE by a 1.54-to-1 ratio. On the Nasdaq, a 1.57-to-1 ratio favored advancing issues. A total of 20.15 billion shares were traded on Monday, lower than the last 20-session average of 23.50 billion.
On the Nasdaq, there were no new highs and no new lows. Also, on the S&P 500, there were no new 52-week highs and no new lows.
Tech Stocks Drive Market Rally
Tech stocks rebounded on Monday to begin a holiday-shortened week, as Wall Street will remain closed on Friday due to Independence Day. Tech stocks, which suffered in the past few sessions, tried to pare most of the losses as AI-related stocks rallied once again.
Alphabet Inc. (GOOGL) was one of the major gainers, with its stock gaining 4.8% on Monday after the tech giant started trading for the first time as a Dow member. Semiconductor stocks also bounced back, with shares of Applied Materials, Inc. (AMAT) jumping 10.1%. Applied Materials has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors also breathed a sigh of relief after the United States and Iran agreed to halt all hostilities and allow smooth passage to all commercial vessels through the Strait of Hormuz. The two nations had signed a memorandum of understanding on June 17 to end the war, but hostilities continued even after that.
The United States struck Iranian military targets over the weekend, raising fresh fears of the war escalating. However, on Sunday, both nations agreed to cease all hostilities.
