Wall Street started the week strong, with major US indexes bouncing back from rare losses as heavyweight technology stocks boosted investor sentiment.The Dow Jones Industrial Average was up 0.58% at 52,174.42, while the Nasdaq Composite was up 0.78% at 25,495.20, and the S&P 500 was up 0.49% at 7,390.14 around 8 pm IST.Artificial intelligence-related companies led the rally after Samsung Electronics and SK Hynix announced plans to invest about $518 billion in a new semiconductor manufacturing hub in South Korea. The project aims to capitalize on the growing demand for AI technology.Following the announcement, Nvidia rose 1.2%, Broadcom rose 2.7%, and Applied Materials rose 3.9%.AI-related stocks have experienced sharp fluctuations in recent weeks. Following a surge of excitement around artificial intelligence, the sector has come under pressure amid concerns that company profits cannot justify a sharp rise in valuations. Since these companies now hold significant weights in major market indices, their activities have had a clear impact on the broader markets.SpaceX, which also owns the XAI business, continued its gains with a rise of 4%. The company has surpassed a valuation of $2 trillion after selling its shares on Nasdaq for the first time earlier this month. Nasdaq also said SpaceX will become part of the Nasdaq 100 index before the start of trading on July 7, requiring funds that track the benchmark to buy the stock.Beyond technology, Comcast was one of the biggest gainers, jumping 9.8% after announcing plans to separate its theme parks, as well as its NBCUniversal media business, including Sky, from its broadband and wireless operations. Even after Monday’s rally, the stock was down 17.3% for the year.Despite the increase in crude oil prices, the market remained bullish. Brent crude rose 1.1% to $73.43 a barrel, slightly above the level before the war with Iran broke out, while benchmark US crude rose 1.3% to $70.15 a barrel.The focus was also on developments in the Middle East following the attacks in the Persian Gulf over the weekend. President Donald Trump said on social media on Monday that Iran has requested a meeting with American officials. However, one of Iran’s top negotiators said no additional talks have been scheduled.Investors are hoping that an end to the war with Iran will reopen access to oil tankers through the Strait of Hormuz, allowing crude shipments from the Persian Gulf to more easily reach customers around the world. Low oil prices could help ease inflationary pressures that have increased during the conflict.If oil prices retreat and remain low, central banks, including the Federal Reserve, may have more room to leave interest rates unchanged or lower them rather than raise them. While higher borrowing costs help curb inflation, they can also slow economic growth and put pressure on investment markets. Investors are restless since oil prices rose above $100 per barrel.The yield on the benchmark 10-year US Treasury note eased slightly to 4.37% from 4.38% on Friday. At the beginning of this month it was at 4.56%.Meanwhile, trading in global markets remained mixed. Hong Kong’s benchmark index rose 1.6% and Shanghai rose 1.2%, the two strongest performers of the day, while South Korea’s Kospi index fell 0.2%.
