Nasdaq jumps over 1% as investors return to tech stocks

US stocks opened higher on Monday, June 29, led by a rebound in technology shares, as investors welcomed signs of easing tensions between the United States and Iran after a volatile week dominated by geopolitical concerns.

The Dow Jones Industrial Average rose about 272 points, or 0.5%, while the S&P 500 gained 0.8%. The Nasdaq Composite outperformed, climbing 1.3% as investors returned to technology stocks after last week’s broad-based selloff.

Market sentiment improved after reports that Washington and Tehran had agreed to pause recent hostilities following military exchanges over the weekend, allowing diplomatic negotiations to continue. US officials also said commercial vessels would be allowed to transit the Strait of Hormuz freely, easing concerns over potential disruptions to global energy supplies.
Technology stocks led the gains, with Meta Platforms and Amazon rising nearly 4% each, while Alphabet advanced about 3%. SpaceX gained around 3% after Nasdaq announced last week that Elon Musk’s satellite company would be fast-tracked into the Nasdaq-100 Index next month.

Among individual movers, Comcast jumped 8% after unveiling plans to spin off its media and technology businesses into two publicly traded companies, with the separation expected to be completed within a year.

Oil prices also edged higher as traders monitored the durability of the US-Iran agreement. West Texas Intermediate (WTI) crude rose 1.4% to $70.23 a barrel, while Brent crude gained 1.1% to $73.41 a barrel.

Investors are also positioning ahead of a busy week of economic data, with the June nonfarm payrolls report due on Thursday, a day earlier than usual because of the US Independence Day holiday.

The employment figures are expected to offer fresh insight into the health of the labour market and could shape expectations for the Federal Reserve’s interest-rate trajectory in the coming months.