Wall Street rises as hostilities between the United States and Iran pause

Major Wall Street indexes moved higher on Monday as investor sentiment improved following a reduction in Middle East tensions after the United States and Iran agreed to halt recent attacks, while Comcast shares surged after the company unveiled plans to split into two separate publicly traded entities.

Pause in hostilities

Technical teams from the United States and Iran working on the implementation of a temporary peace agreement are expected to meet in Doha in the coming days, according to a source who spoke to Reuters on Monday, after reciprocal strikes over the weekend threatened the fragile truce.

While diplomatic efforts to end the conflict have eased investor concerns, sharp rhetoric and intermittent tensions in the region have at times raised fears of broader escalation that could push oil prices higher.

“There have been several false starts in peace negotiations,” said Peter Andersen, founder of Andersen Capital Management. “I expect most market participants to remain in a wait-and-see mode through the rest of this week.”

Market performance

As of 9:41 a.m. Eastern Time, the Dow Jones Industrial Average rose 280.09 points, or 0.54%, to 52,154.45.

The S&P 500 gained 58.50 points, or 0.80%, to 7,413.02, while the Nasdaq Composite advanced 339.77 points, or 1.34%, to 25,637.39.

Eight of the S&P 500’s 11 major sectors traded higher, led by communication services, which climbed 2.6%.

Comcast shares jumped 9.8% after the media and cable company announced plans to separate into two independent publicly traded companies by spinning off NBCUniversal and Sky through a tax-free distribution.

AI concerns add to uncertainty

The upcoming earnings season is expected to be the next major test for equity markets after a strong performance so far this year.

“The S&P 500’s 21% gain over the past 12 months has been entirely earnings-driven, making second-quarter 2026 results a critical factor in determining the market’s next direction,” said Ben Snider, Chief US Equity Strategist at Goldman Sachs.

He added that concerns surrounding artificial intelligence spending have introduced a new layer of uncertainty into the market outlook.

Last week’s selloff weighed heavily on investor favorites such as semiconductor stocks and the so-called Magnificent Seven, pushing both the Nasdaq and S&P 500 to weekly losses. In contrast, the Dow Jones proved more resilient, gaining 0.6% over the week.

On Monday, however, the information technology sector rose 0.8% and was on track to end a five-session losing streak.

Investors are also expecting at least one Federal Reserve interest-rate increase this year to contain inflation, and those expectations could be reassessed later this week following the release of June US employment data.

SpaceX shares gained 2.3% after Nasdaq announced that the recently listed company will join the Nasdaq-100 Index on July 7.

Meanwhile, shares of Martin Marietta Materials fell 5% after the company announced a $13.5 billion merger with limestone supplier Lhoist North America.

Veridian Therapeutics jumped 6.6% after the US Food and Drug Administration approved its treatment for thyroid eye disease.

Advancing stocks outnumbered decliners by 1.15-to-1 on the New York Stock Exchange and by 1.47-to-1 on the Nasdaq.

The S&P 500 recorded no new 52-week highs or lows, while the Nasdaq Composite likewise posted no new annual highs or lows.