U.S. stocks moved higher on Monday as investors grew optimistic that a potential deal between the United States and Iran could eventually be reached. The S&P 500 rose 1.02%, marking its highest close since before the conflict began, as quoted in CNBC.
The Nasdaq Composite gained 1.23%, while the Dow Jones Industrial Average added 0.63%. The S&P 500 recovered Iran war losses fully, per the same CNBC article. Technology shares played a key role in lifting the broader market.
Blockade and Failed Talks Add Complexity
The rally came despite tensions remained elevated. The United States recently imposed a blockade on Iran’s ports following unsuccessful negotiations in Pakistan. While vessels heading to non-Iranian ports are not being blocked, the move has heightened concerns about prolonged conflict and oil supply disruptions.
Trump’s Comments Boost Sentiment
Markets gained further momentum after President Donald Trump indicated that Iran is open to negotiations, saying the other side would “like to make a deal very badly,” as mentioned on CNBC.
Despite the initial setback, diplomatic efforts continue. Mediators from Pakistan, Egypt and Turkey are working to revive negotiations between the two nations, Axios reported, as quoted on the same CNBC article.
Strong Weekly Gains Provide Support
Last week’s optimism around a temporary ceasefire helped markets post strong gains. The S&P 500 climbed 3.6%, the Nasdaq advanced 4.7%, and the Dow Jones rose 3%, marking their best weekly performances since November, per CNBC.
Stock Winners of S&P 500
State Street SPDR S&P 500 ETF Trust SPY has delivered flat returns since the start of the Iran war. The fund has gained about 2.6% over the past month. Below, we highlight five stocks that have risen more than 30% during the past one-month timeframe and helped the S&P 500 recoup its losses from the war so far.
Winning Stocks in Focus
Intel INTC – Zacks Rank #3 (Hold)
Intel Corporation, the world’s largest semiconductor company and primary supplier of microprocessors and chipsets, is gradually reducing its dependence on the PC-centric business by moving into data-centric businesses — such as AI and autonomous driving. The stock has jumped about 42.4% over the past month.
Lumentum LITE – Zacks Rank #3
Lumentum Holdings Inc. is a provider of optical and photonic products serving cloud, Artificial Intelligence/Machine Learning (AI/ML), telecommunications, consumer and industrial end markets. The LITE stock has added about 39.4% over the past month.
SanDisk Corp SNDK – Zacks Rank #1(Strong Buy)
Sandisk develops, manufactures, and sells data storage devices and solutions based on NAND flash technology. The portfolio spans solid-state drives (SSDs), embedded products, removable cards, USB drives, and wafers and components. SNDK shares have gained about 35.4% over the past month.
Corning GLW – Zacks Rank #1
Corning Incorporated produces advanced glass substrates that are used in a large number of applications across multiple markets. GLW shares have advanced about 32.7% over the past month.
Ciena CIEN – Zacks Rank #1
Ciena Corporation is a leading provider of optical networking equipment, software and services. The stock has added about 32% over the past month.
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This article originally published on Zacks Investment Research (zacks.com).