GLOBAL MARKETS-Stocks bounce back, oil pares gains as Iran and Israel signal a pause

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Updates prices after U.S. market close

Nasdaq, S&P 500 make a comeback after Friday's rout

Earlier, KOSPI dived 8%, Nikkei dropped 3.9% as AI rally stalled

Oil rises on Middle East uncertainties but settles below session highs

Shifting Fed rate expectations help keep investors jittery

By Sinéad Carew and Samuel Indyk

- MSCI's global equities index fell slightly on Monday but Wall Street saw some support from a bounce in technology stocks while oil futures pared earlier gains as Iran and Israel said they had halted attacks on each other after an appeal from U.S. President Donald Trump.

The dollar eased, although uncertainty remained as Tehran said it would resume strikes if Israel continued to hit Iran-backed Hezbollah in Lebanon. Israel had struck a petrochemical plant in southwestern Iran and Iran's Islamic Revolutionary Guard Corps said it retaliated with a strike aimed at a similar Israeli plant in the city of Haifa.

In energy markets, U.S. crude CLc1 futures settled up 0.84%, or 76 cents at $91.30 a barrel after earlier trading above $95 a barrel, while Brent LCOc1 ended the session at $94.25 per barrel, up 1.25%, or $1.16, after earlier rising above $98 a barrel.

Wall Street main indexes staged a comeback as investors looked for bargains after Friday's selloff when the heavyweight technology sector put pressure on the entire market. The sector had suffered its largest daily decline since April 2025 after a hot May jobs report fueled fears the U.S. Federal Reserve would need to raise interest rates.

"The profit takers did their work on Friday," said Bruce Zaro, managing director at Granite Wealth Management in Plymouth, Massachusetts. "New buyers have come in and said, that was overdone."

Aside from worrying about geopolitics and interest rates, Zaro said that investors were also preparing for this week's hotly anticipated SpaceX SPCX.O IPO and reacting to tweaks to membership of the S&P 500. The index is adding Marvell Technology MRVL.O, helping to boost the chip sector, which sold off sharply on Friday.

The S&P 500 technology index finished up 1.5% on Monday after tumbling 5.8% on Friday.

On Wall Street, the Dow Jones Industrial Average .DJI fell 80.77 points, or 0.16%, to 50,786.01, the S&P 500 .SPX rose 21.99 points, or 0.30%, to 7,405.73 and the Nasdaq Composite .IXIC rose 220.23 points, or 0.86%, to 25,929.66.

MSCI's gauge of stocks across the globe .MIWD00000PUS fell 4.84 points , or 0.44 %, to 1,100.96 .

Earlier the pan-European STOXX 600 .STOXX index had finished down 0.15%.

U.S. and European trading sessions were in stark contrast with Asia where South Korea's chip-heavy KOSPI .KS11, the world's best-performing market this year, had tumbled 8.3% while Japan's Nikkei .N225 fell almost 4%, with market darlings across the computer-chip production supply chain falling furthest, while Taiwan's benchmark .TWII sank 3.5%.

In currencies, the dollar retreated from its highest level in nearly two months as the halt of Iranian and Israeli attacks reduced safe haven demand.

The dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.08% to 100.00 , with the euro EUR= up 0.1% at $ 1.1531 .

Against the Japanese yen JPY=, the dollar weakened 0.07% to 160.17 .

In cryptocurrencies, bitcoin BTC= gained 2.23% to $63,248.36. Last week it had notched its heaviest weekly drop since the collapse of crypto exchange FTX in late 2022, falling about 16%.

In government bonds markets, the yield on benchmark U.S. 10-year notes US10YT=RR rose 2.8 basis points to 4.564%, from 4.536% late on Friday while the 30-year bond US30YT=RR yield rose 3.9 basis points to 5.0384% from 4.999% late on Friday.

The 2-year note US2YT=RR yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 0.2 basis points to 4.164 %, from 4.162 % late on Friday .

In precious metals, gold was close to flat as hopes for a potential Israel-Iran ceasefire helped it bounce from session lows but expectations for a Federal Reserve rate hike kept it in check.

Spot gold XAU= fell 0.03% to $ 4,327.63 an ounce.