Stock Market Impact: U.S. equities rebounded on Monday; the S&P 500 rose 1% to 7,456.45 points, the Nasdaq Composite advanced 1.6% to 26,123.67 points, and the Dow Jones Industrial Average climbed 0.3% to 51,026.41 points at 10:52 ET.
Listed Companies and Sectors: The prior session had seen the S&P 500 fall 2.6% (its worst day of the year) and the Philadelphia Semiconductor Index drop more than 10% after disappointing Broadcom quarterly results. On Monday, chip makers Broadcom, Micron Technology, and Nvidia posted gains. Eli Lilly surged after trial data showed its next‑generation drug aided weight loss, knee pain, and sleep‑apnea. Southwest Airlines and Delta Air Lines slipped slightly as higher oil prices revived fuel‑cost concerns.
Investment Flows: The article notes no specific FDI/FPI data, but the easing of Iran‑Israel hostilities removed a geopolitical risk premium, which can improve foreign investor sentiment toward U.S. equities.
Interest Rates, Inflation, and Liquidity: A robust May U.S. non‑farm payroll report has heightened expectations that the Federal Reserve may raise rates later in the year to counter inflationary pressures linked to the Iran conflict and rising oil prices. Government bond yields moved higher in the prior session; the 10‑year Treasury yield (TNX) was unchanged at the time of writing.
Fiscal or Monetary Policy: No new fiscal measures were announced. The discussion centers on potential Fed rate hikes in response to inflation risks, especially those stemming from higher Brent crude, which was up 1.8% to $94.79 a barrel.
