US stock markets opened in the green on Monday, with all three major indices climbing as technology stocks led a broad recovery. The Nasdaq Composite, home to the market’s biggest tech names, gained approximately 1.24%, while the S&P 500 rose 0.56% and the Dow Jones Industrial Average added 0.43%.
The bounce comes after what was described as the worst day for stocks in a decade. Last Friday’s selloff was particularly savage for the semiconductor sector, which saw roughly $1 trillion in market value evaporate in a single session.
Geopolitics and the relief trade
Part of the market’s renewed optimism appears rooted in geopolitical developments. Speculation around possible talks between the US and Iran gave investors a reason to exhale, easing some of the tension that had been compressing sentiment.
The semiconductor recovery did the heaviest lifting. Chip stocks, which had been at the epicenter of Friday’s destruction, snapped back as traders re-entered positions at discounted levels.
