Stocks Close Higher As Chipmakers Rebound; Israel And Iran Avoid Major Escalation
Stocks closed higher on Monday after chipmakers rebounded following a rout on Friday and Iran and Israel avoided a major escalation.
The S&P 500 gained 0.30%, while the tech-heavy Nasdaq Composite did so 0.86%. The Dow Jones Industrial Average, in turn, dropped 0.16%.
CNBC noted that Micron Technology surged 10% after plunging 13% on Friday. Nvidia and Broadcom also closed the session higher following their respective drops. Overall, the iShares Semiconductor ETF gained 6% after falling 10% in the past session.
Israel and Iran avoided a major escalation after trading strikes for the first time since the ceasefire in early April.
Israeli Prime Minister Benjamin Netanyahu said on Monday that Israel will halt strikes against Iran “for now” but will resume them if its territory is attacked.
Netanyahu released a statement noting that “after Iran attacked Israel” he “directed the IDF to strike military and economic targets throughout Iran.”
He noted that, at the moment, “the fire on this front has been halted, because after the terrorist regime in Tehran was struck, it stopped attacking us,” but warned that “if that terrorist regime makes the mistake of attacking us again, we will respond with force.”
“Today, Iran and Hezbollah are weaker than ever, and we are stronger than ever. But our struggle against them is not yet over,” he added.
The development took place shortly after Iran said it had ended the most recent military operations against Israel following an exchange of strikes on Sunday.
Tehran’s central military headquarters, Khatam al-Anbiya Central HQ, said in a statement that the “suspension of Armed Forces operations is announced,” claiming it “delivered a painful response to the regime in support of the oppressed people of Lebanon.”
Tehran went on to claim that the attack, which followed Israeli strikes against a Beirut suburb considered a Hezbollah stronghold, “is a response from which the illegitimate Zionist regime and its supporters should have learned a lesson.”
Oil fell after the development. While prices are still up for the day, they ceded most gains.
Brent crude, the international benchmark, had gained as much as 5% earlier in the session, but was trading 1.35% higher and clocked in at $94.35 at 4:21 p.m. ET. West Texas Intermediate, the U.S. benchmark, was trading below 1% higher and stood at $91.40 at the same time.
