Wall Street rebounds as tech stocks recover despite West Asia tensions

US shares started the week higher on Monday as investors returned to technology shares following last week's sharp sell-off, even as renewed tensions in the Middle East pushed oil prices higher.

Major indices recovered after a cautious start to trading. The Dow Jones Industrial Average gained about 0.3%, while the S&P 500 rose nearly 0.6%. The Nasdaq Composite outperformed, advancing around 0.9%.

The gains came after a difficult Friday session that saw the Nasdaq tumble 4% and the S&P 500 snap a nine-week winning streak. Stronger-than-expected US jobs data had triggered concerns that the Federal Reserve may need to keep interest rates higher for longer, prompting investors to reduce exposure to high-growth technology and semiconductor stocks.

However, buyers returned to the sector on Monday. Chipmaker Micron Technology jumped about 9%, while AI heavyweight Nvidia gained roughly 2%.
At the same time, geopolitical developments remained in focus.

Oil prices climbed after fresh military exchanges between Iran and Israel over the weekend raised concerns about stability in the region. Iran launched missile strikes in response to Israeli actions, prompting retaliatory attacks from Israel. Although Tehran later signalled an end to its latest offensive, uncertainty around the conflict continues.

Brent crude briefly surged close to $98 a barrel, while US benchmark West Texas Intermediate approached $95 before both pared some gains.

The rise in oil prices comes ahead of this week's US inflation data, which investors will closely monitor for signs that higher energy costs are feeding into broader price pressures. The figures could influence expectations for future Federal Reserve policy decisions.

Markets will also track Oracle's quarterly earnings later this week, while attention is building around the anticipated SpaceX public listing, expected to be among the largest IPOs on record.