Dow jumps 270 points as US-Iran tensions ease; Comcast surges on split plan

Wall Street's main indexes opened higher on Monday as easing tensions in the Middle East lifted investor sentiment after days of hostilities between the United States and Iran.

Technology stocks also rebounded following a sharp selloff last week, while Comcast shares soared after the media and cable company announced plans to split into two publicly traded businesses.

The Dow Jones Industrial Average rose about 271 points, while the S&P 500 gained 0.82%.

The Nasdaq Composite advanced 1.31%, supported by strength in technology shares.

A US official said on Sunday that Washington and Tehran would de-escalate following several days of hostilities, raising hopes that an interim peace agreement signed earlier this month could remain intact.

The two sides also agreed to allow commercial vessels to transit the Strait of Hormuz freely after a weekend of military exchanges that had threatened negotiations.

While diplomatic efforts have reassured investors, concerns remain over the possibility of renewed conflict disrupting global energy supplies.

Technology stocks recover after last week's selloff

Technology stocks attempted to recover after a difficult week that saw investors rotate into more defensive sectors.

Last week, the S&P 500 lost nearly 2%, while the Nasdaq Composite dropped about 4.6% as semiconductor companies and the so-called Magnificent Seven came under pressure.

Apple shares gained 1% in trading after falling 4.8% last week.

The company raised iPad and MacBook prices on Thursday, saying it could no longer absorb higher memory and storage chip costs driven by the artificial intelligence industry's expanding data center investments.

Chipmakers also traded higher, with Marvell gaining 1.8%.

Meanwhile, RBC Capital Markets raised its 12-month target for the S&P 500 to 8,150 from 7,900, citing earnings strength and favorable market conditions.

The second-quarter earnings season, set to begin in the coming weeks, is expected to provide the next major test for equities.

"The 21% S&P 500 return over the past 12 months has been driven entirely by earnings, making the upcoming Q2 2026 reporting season an important catalyst for the forward trajectory of the market," said Ben Snider, chief US equity strategist at Goldman Sachs in a Reuters report.

Corporate developments drive individual stocks

Comcast shares jumped about 8% in trading after the company announced plans to separate NBCUniversal and Sky into an independent publicly traded company through a tax-free spinoff.

The separation is expected to be completed in about a year.

SpaceX gained roughly 4% after Nasdaq said the newly listed company would be added to the Nasdaq-100 index on July 7.

Elsewhere, Martin Marietta Materials fell 6.11% after announcing a $13.5 billion merger with limestone supplier Lhoist North America.

Viridian Therapeutics climbed 6.65% after the US Food and Drug Administration approved its treatment for thyroid eye disease.

Investors also remained focused on monetary policy expectations.

Traders were pricing in at least one Federal Reserve interest rate hike this year to contain inflation, with upcoming US jobs data expected to influence those expectations.

Oil prices edged higher as markets assessed whether the pause in hostilities between the United States and Iran would hold.