Stock Indexes Finish Sharply Higher as Tech Soars

The S&P 500 Index ($SPX) (SPY) on Monday closed up +1.18%, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +0.59%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +2.25%.  September E-mini S&P futures (ESU26) rose +1.20%, and September E-mini Nasdaq futures (NQU26) rose +2.24%. 

Stock indexes settled sharply higher on Monday, led by strength in technology stocks.  Also, stocks found support on Monday after the US and Iran backed away from a fresh escalation of hostilities and agreed to stop attacking each other before peace talks resume over the Strait of Hormuz and other issues.  President Trump said Monday that talks are set to resume in Doha on Tuesday.

WTI crude oil (CLQ26) rose by more than +2% on Monday on escalation of tensions in the Strait of Hormuz. Late Friday, the US attacked several Iranian military installations in retaliation for Iran’s attack on Thursday of a container ship in the strait.  The US then attacked Iran again on Saturday after Iran attacked a tanker carrying Qatari oil and launched drone and missile attacks against US bases in Bahrain and Kuwait. However, crude oil prices fell from their best level after the US and Iran late Sunday agreed to stop attacking each other for now and to allow vessels to move freely through the Strait of Hormuz. 

The markets are discounting a 32% chance of a +25 bp rate hike at the next FOMC meeting on July 28-29.

Overseas stock markets settled higher on Monday.  The Euro Stoxx 50 closed up +0.16%.  China's Shanghai Composite rebounded from a 2-week low and closed up +1.16%.  Japan's Nikkei-225 Stock Average recovered from a 2-week low and closed up +0.15%.

Interest Rates

September 10-year T-notes (ZNU6) on Monday closed down -2.5 ticks, and the 10-year T-note yield rose +0.5 bp to 4.374%.  T-notes were under pressure on Monday amid a +2% increase in WTI crude oil prices, which raised inflation expectations. Also, Monday’s strength in stocks reduced safe-haven demand for T-notes. 

European government bond yields were mixed on Monday.  The 10-year German bund yield rose +0.7 bp to 2.857%.  The 10-year UK gilt yield fell -1.5 bp to 4.716%.

The Eurozone Jun economic confidence indicator rose by +1.3 to 95.0, beating expectations of 94.3.

Eurozone May M3 money supply rose +3.2% y/y, stronger than expectations of +2.7% y/y.

Swaps are discounting a 7% chance of a +25 bp ECB rate hike at its next policy meeting on July 23.

US Stock Movers

The strength in chipmakers and AI infrastructure stocks boosted the overall market on Monday.  KLA Corp (KLAC) closed up more than +11%, and Western Digital (WDC) and Applied Materials closed up more than +10%. Also, Lam Research (LRCX) closed up more than +8%, and Seagate Technology Holdings Plc (STX) closed up more than +7%.  In addition, ASML Holdings NV (ASML) closed up more than +4%, and Advanced Micro Devices (AMD) and Marvell Technology (MRVL) closed up more than +3%.  Finally, Intel (INTC) and Broadcom (AVGO) closed up more than +2%.

Cybersecurity stocks rallied on Monday.  Palo Alto Networks (PANW) closed up more than +9%, and CrowdStrike Holdings (CRWD) and Okta (OKTA) closed up more than +5%.  Also, Zscaler (ZS) closed up by more than +3%, and Cloudflare (NET) and Fortinet (FTNT) closed up more than +2%.

Iridium Communications (IRDM) closed up more than +25% after Rocket Lab agreed to acquire the company for about $8 billion, or $54 per share.

Roblox (RBLX) closed up more than +14% after Arete Research Services LLP upgraded the stock to buy from neutral with a price target of $95.

Charter Communications (CHTR) closed up more than +9% after Bloomberg reported the company has discussed partnering on a consumer phone offering with SpaceX. 

Axon Enterprise (AXON) closed up more than +9% after a CNBC report said President Trump bought $5 million of the stock two weeks before the company struck a $220 million contract with Immigration and Customs Enforcement (ICE).

Viridian Therapeutics (VRDN) closed up more than +5% after the FDA approved the company’s drug for treating an inflammatory disorder that affects the tissues around the eyes. 

Alphabet (GOOGL) closed up more than +4% to lead gainers in the Dow Jones Industrials after announcing it will offer specialist artificial intelligence models from software company Sandbox AQ through its cloud services. 

Comcast Corp (CMCSA) closed up more than +4% after announcing plans to separate its media businesses from its cable-TV and internet operations.  However, the news weighed on other telecommunications stocks, with T-Mobile US (TMUS) closing down by more than -4% and AT&T (T) closing down by more than -3%. 

Innio NV (INIO) closed up more than +2% after BNP Paribas initiated coverage on the stock with a recommendation of outperform and a price target of $48.

Copart (CPRT) closed down more than -8% after announcing that CEO Jeff Law will step down, effective July 31.

Verizon Communications (VZ) closed down more than -5% after saying it expects to record a loss of about $700 million to $800 million in Q2 after striking a deal with BT Group Plc to create a joint venture for their international businesses.

Martin Marietta Materials (MLM) closed down more than -5% after agreeing to combine with Lhoist North America in a transaction valued at $13.5 billion.

Biohaven Ltd (BHVN) closed down more than -5% after Bank of America Global Research downgraded the stock to underperform from neutral with a price target of $11.

Progressive Corp (PGR) closed down more than -1% after Wells Fargo Securities downgraded the stock to underweight from equal weight with a price target of $205.

Doximity (DOCS) closed down nearly -1% after Bank of America Global Research double-downgraded the stock to underperform from buy with a price target of $20.

Earnings Reports(6/30/2026)

Constellation Brands Inc (STZ), NIKE Inc (NKE), Progress Software Corp (PRGS).