MSCI’s global equities index recovered some earlier losses with support from a bounce-back in technology, and oil futures pared gains yesterday as Iran and Israel said they had halted attacks on each other after an appeal from US President Donald Trump.
In energy markets, US crude futures were up 1.42 per cent at $91.83 a barrel after earlier trading above $95 a barrel, while Brent was at $94.78 per barrel, up 1.82pc on the day, after earlier rising above $98 a barrel.
Wall Street indexes staged a comeback as investors looked for bargains after Friday’s selloff when the heavyweight technology sector put pressure on the entire market. The sector suffered its largest daily decline since April 2025 after a hot May jobs report fueled fears the US Federal Reserve would need to raise interest rates.
“The profit takers did their work on Friday,” said Bruce Zaro, managing director at Granite Wealth Management in Plymouth, Massachusetts. “New buyers have come in and said, that was overdone.”
Aside from worrying about geopolitics and interest rates, Zaro said that investors were also preparing for this week’s hotly anticipated SpaceX IPO and reacting to tweaks to membership of the S&P 500. The index is adding Marvell Technology, helping to boost the chip sector, which sold off sharply on Friday.
The S&P 500 technology index was up 2.3pc yesterday after tumbling 5.8pc on Friday. On Wall Street, the Dow Jones Industrial Average rose 153.76 points, or 0.30pc, to 51,020.54, the S&P 500 rose 71.63 points, or 0.97pc, to 7,455.37 and the Nasdaq Composite rose 414.23 points, or 1.61pc, to 26,123.66. MSCI’s gauge of stocks across the globe rose 0.70 points, or 0.06pc, to 1,106.50 while the pan-European STOXX 600 index fell 0.06pc.
The decline in equity markets was stark earlier in Asia, with South Korea’s chip-heavy KOSPI, the world’s best-performing market this year, leading losses with an 8.3pc slide that has the benchmark down over 16pc from last week’s record high. Japan’s Nikkei fell almost 4pc, with market darlings across the computer-chip production supply chain falling furthest, while Taiwan’s benchmark sank 3.5pc.
In cryptocurrencies, bitcoin gained 3.27pc to $63,891.25. Last week it notched its heaviest weekly drop since the collapse of crypto exchange FTX in late 2022, falling about 16pc.
In government bonds, US Treasury yields were mixed with two-year yields pulling back from a 15-month high reached on Friday after the stronger-than-expected May jobs report. The yield on benchmark US 10-year notes rose 1.6 basis points to 4.552pc, from 4.536pc late on Friday, while the 30-year bond yield rose 2 basis points to 5.019pc.
The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 0.2 basis points to 4.16pc, from 4.162pc late on Friday.
In precious metals, gold steadied as hopes for a potential Israel-Iran ceasefire helped it bounce from session lows, but worries about a Fed rate hike limited the upside.
Spot gold was last up slightly at $4,331.38 an ounce.
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