Wall Street rises 1%, fully recovers Iran war losses

Wall Street Rebounds as Tech Leads Gains Despite Hormuz Tensions

U.S. equities staged a strong comeback, closing higher despite escalating geopolitical tensions surrounding the Strait of Hormuz. Investors shifted focus toward earnings season and resilient tech performance, helping markets shake off a weak start.

The S&P 500 rose 1% to 6,887, fully recovering losses tied to the Middle East conflict. The NASDAQ Composite climbed 1.2%, driven by a rebound in software stocks, while the Dow Jones Industrial Average gained 0.6%.

Markets found support as investors remained hopeful that negotiations between the U.S. and Iran would continue, even after weekend talks failed to yield a lasting agreement.

Meanwhile, Donald Trump confirmed the start of a U.S. naval blockade around Hormuz, aiming to restrict certain shipping flows. Despite this, he noted increased vessel traffic, suggesting partial normalization in the critical energy corridor. Analysts viewed the move largely as a negotiating tactic rather than immediate escalation.

Oil prices hovered near $100 per barrel, reflecting ongoing uncertainty. While the blockade initially sparked concern, market reaction remained relatively contained, with traders balancing geopolitical risks against improving earnings expectations.

Attention is now turning to corporate earnings, with Goldman Sachs kicking off the banking season. Despite strong overall profits, mixed segment performance weighed on investor sentiment. Other major banks are set to report, shaping the near-term market direction.