U.S. stocks ended mixed on Monday as semiconductor shares bounced back from last week’s sharp sell-off, while investors closely monitored developments in the Middle East after renewed tensions between Iran and Israel.
The S&P 500 gained 0.30% to close at 7,405.73, while the Nasdaq Composite advanced 0.86% to finish at 25,929.66, supported by strength in technology stocks. The Dow Jones Industrial Average slipped 80.77 points, or 0.16%, ending the session at 50,786.01.
Chipmakers led the market recovery, with Micron Technology surging nearly 10% after tumbling 13% on Friday. Nvidia and Broadcom also posted solid gains as investors returned to the sector following a steep sell-off that had pushed the Nasdaq to its worst daily performance since April 2025.
The semiconductor rebound helped lift sentiment after Friday’s profit-taking wave, which was driven by concerns that AI-related stocks had become overextended amid an uncertain economic outlook. The iShares Semiconductor ETF climbed nearly 6% on Monday, recovering part of the 10% decline recorded in the previous session.
Global markets remained under pressure, however. Asian equities fell sharply in response to Friday’s U.S. tech rout, with South Korea’s Kospi dropping more than 8% and Japan’s Nikkei 225 losing 3.85%. European markets also traded slightly lower.
Meanwhile, geopolitical tensions stayed in focus after Iran launched strikes on Sunday, raising concerns over the stability of a fragile ceasefire. Israel responded with what it described as a large-scale attack on strategic defense targets. Despite the renewed hostilities, President Donald Trump stated that both nations were pursuing an immediate ceasefire and that diplomatic efforts remained ongoing.
Oil prices moved higher amid the uncertainty, though gains eased later in the session as hopes for de-escalation improved. West Texas Intermediate crude settled 0.84% higher at $91.30 per barrel, while Brent crude rose 1.25% to close at $94.25.
Looking ahead, investors will turn their attention to upcoming inflation data and the highly anticipated public debut of Elon Musk’s SpaceX on Friday. The offering is expected to be one of the largest IPOs in Wall Street history and could provide a major test of investor enthusiasm surrounding AI-driven market valuations.
