U.S. equity markets traded higher on Monday as investors responded positively to a temporary halt in military hostilities between the United States and Iran, helping improve market sentiment after weeks of geopolitical uncertainty.

The Dow Jones Industrial Average climbed more than 224 points, or 0.4%, while the S&P 500 advanced 0.8%. The technology-heavy Nasdaq Composite outperformed, rising approximately 1.3% as investors returned to growth-oriented stocks.

The gains came during a volatile trading session as investors balanced improving geopolitical conditions with continued caution over global economic and energy market risks.

U.S.-Iran Truce Lifts Investor Confidence

Market sentiment improved after Washington and Tehran agreed to suspend further military action and allow commercial shipping to resume through the Strait of Hormuz.

According to U.S. officials, both governments agreed to continue technical discussions under the existing memorandum of understanding while allowing commercial vessels to move freely through the strategically important waterway.

The announcement followed a weekend of military exchanges, including U.S. strikes on Iranian military targets after Tehran launched attacks against vessels operating near the Strait of Hormuz.

Although tensions remain elevated, investors viewed the agreement as a positive step toward preventing further disruptions to global energy supplies and international trade.

Alphabet Shines in Dow Debut

Among the strongest performers of the session was Alphabet, whose shares climbed more than 4% during the company’s first trading day as a component of the Dow Jones Industrial Average.

The inclusion marks another milestone for Alphabet as one of the world’s largest technology companies and reflects the growing influence of artificial intelligence and digital services within the broader U.S. economy.

Technology stocks generally outperformed during the session as investors rotated back into large-cap growth companies following recent market volatility.

Comcast Rallies on Corporate Restructuring

Shares of Comcast also posted strong gains after the company announced plans to separate its media and technology businesses into two independently traded public companies.

The proposed tax-free spinoff will separate NBCUniversal and Sky from Comcast’s communications business, allowing each company to pursue its own strategic priorities.

Investors welcomed the restructuring, viewing it as a move that could unlock shareholder value while enabling both businesses to focus more effectively on their respective markets.

Comcast shares gained approximately 7% following the announcement.

Oil Prices Edge Higher

Energy markets remained active despite improving geopolitical sentiment.

International benchmark Brent crude rose approximately 1.2% to around $72.87 per barrel, while West Texas Intermediate (WTI) crude advanced 1.7% to roughly $70.38 per barrel.

The gains reflected continued uncertainty over whether the temporary halt in hostilities will develop into a more lasting diplomatic agreement.

Although shipping through the Strait of Hormuz has resumed, traders remain alert to any developments that could threaten one of the world’s most important energy transportation routes.

Markets Watch Diplomatic Progress

Market analysts believe investors are increasingly treating recent military flare-ups as temporary events rather than signs of prolonged regional conflict.

While geopolitical risks remain elevated, many expect diplomatic negotiations to continue, reducing the probability of significant disruptions to global energy supplies.

Nevertheless, investors remain cautious given the potential for unexpected developments that could quickly alter market sentiment and commodity prices.

Looking Ahead

Investors will continue monitoring negotiations between the United States and Iran, developments surrounding the Strait of Hormuz, and broader geopolitical risks that could influence global financial markets. Attention will also remain focused on corporate earnings, economic data, and the performance of major technology companies as markets assess whether improving diplomatic conditions can sustain the recent recovery in investor confidence.