US equity markets posted broad gains on Monday, with the technology sector leading a renewed risk-on rally.
The Nasdaq Composite surged 1.2%, outpacing the S&P 500’s 0.7% advance and the Dow Jones Industrial Average’s 0.4% climb.
The broad-based rebound marks a continuation of the recovery seen earlier in the week, as investors digest positive geopolitical developments and rotate back into growth names after a period of significant selling pressure.
The rally was supported by reports that the United States and Iran are nearing a formal peace agreement, a development that has helped ease tensions in the Middle East and bolstered investor confidence.
The prospect of a diplomatic resolution has removed a key overhang on global markets, allowing traders to focus on corporate fundamentals and economic data.
This shift in sentiment was particularly evident in the technology sector, which has been a primary beneficiary of the renewed willingness to take on risk.