Wall Street opened higher on Monday, led by gains in semiconductor stocks, as investors looked past ongoing geopolitical tensions to focus on continued strength in technology shares.
As of 9:33 a.m. EDT, the Nasdaq Composite climbed 249.35 points, or 0.98%, to 25,769.60, outperforming the broader market on the back of chip-sector buying.
The S&P 500 advanced 48.13 points, or 0.65%, to 7,505.82, while the Dow Jones Industrial Average gained 194.19 points, or 0.37%, to 52,340.61, according to real-time market data.
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The rally in semiconductor stocks helped offset investor caution over geopolitical developments, with traders continuing to monitor global conflict-related headlines for potential market impact.
Technology stocks remained the biggest support for the broader market, extending the sector's recent momentum despite heightened uncertainty surrounding global security risks.
The gains came after Iran signalled it remains open to diplomacy despite the US carrying out a ninth straight day of strikes. Foreign Ministry spokesperson Esmail Baghaei said intermediaries were continuing to exchange messages with Tehran and that negotiations could move forward if they aligned with Iran's national interests.
Oil prices pared overnight gains as hopes of a diplomatic resolution improved. US West Texas Intermediate crude hovered around $82 a barrel, while Brent crude traded just below $88 after retreating from earlier highs.
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"Investors still don't think Trump has the tolerance for a material escalation of the US force posture in the Middle East... and if that's the case, then some type of a diplomatic resolution is inevitable," Adam Crisafulli of Vital Knowledge said.
Semiconductor stocks recovered after last week's selloff, with the VanEck Semiconductor ETF rising more than 1%. Micron Technology, Astera Labs, Teradyne and Advanced Micro Devices gained between 2% and 5%.
Darrell Cronk, chief investment officer at Wells Fargo Investment Institute, said the AI and semiconductor trade was undergoing a "healthy reality check," adding that while oversold conditions could support a short-term rebound, the sector's intermediate-term uptrend had been disrupted.
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