Update: Communication Services Helps Boost US Equity Indexes; Crude Oil Advances Amid Mixed Messaging on Iran Meeting
(Updates with index/price moves and geopolitical news from the first paragraph.)US equity indexes rose amid standout gains in communication services and consumer discretionary, and as crude oil advanced amid mixed messaging regarding a meeting to be held on Tuesday between Washington and Tehran in Doha, Qatar.The Nasdaq Composite jumped 2.1% to 25,820.14, the S&P 500 advanced 1.2% to 7,440.43, and the Dow Jones Industrial Average rose 0.6% to 52,182.74 on Monday.Technology was among the top three gainers, while materials led the decliners. Tesla (TSLA) and Alphabet (GOOG, GOOGL) were among the top 20 gainers in a category with a market capitalization of over $200 billion. The group's and the S&P 500 index's leader remained Corning (GLW), trading up 16% at the close.In geopolitical news, the United States and Iran on Monday separately announced they will send delegations to Qatar this week, though Tehran insisted it has not agreed to meet with the US "at any level" after attacks across the Persian Gulf over the weekend challenged negotiations to end the war, the Associated Press reported.Iran's foreign minister, Abbas Araghchi, reiterated that "Tehran retains exclusive authority over traffic through the Strait of Hormuz under the preliminary peace agreement, leaving the risk of renewed supply disruptions elevated," Saxo Bank said in a note. Marine traffic through the strait has modestly picked up in the last 36 hours, CNN cited ship tracking data."Disputes over key provisions of the memorandum of understanding -- particularly around control and potential costs for transit through Hormuz -- mean the situation remains fragile and risks to regional stability persist," Jim Reid, global head of macro research at Deutsche Bank, said in the note.Meanwhile, fighting between Hezbollah and Israel continued in Lebanon over the weekend despite a recent agreement between the countries, CNN reported Monday. Iran has demanded a full withdrawal of Israeli forces from Lebanon as part of a final deal with the US.The front-month global benchmark North Sea Brent rose 1.1% to $72.78 per barrel, and the US West Texas Intermediate climbed 1.8% to $70.47 per barrel.Most US Treasury yields rose, with the two-year up 1.9 basis points to 4.11%. The 10-year rate was slightly higher at 4.38%.Gold futures slumped 1.6% to $4,029.5, and silver futures dropped 1.5% to $58.31.In economic news, the Dallas Fed's monthly manufacturing index fell to zero in June from 0.4 in May, missing expectations for an increase to 1.0. The other manufacturing readings already released indicate expansion.In company news, Rocket Lab (RKLB) agreed to acquire satellite communications provider Iridium Communications (IRDM) in a cash-and-stock deal valued at about $8 billion to create a vertically integrated space company. Shares of Rocket Lab soared almost 16%, making it the Nasdaq's second-biggest gainer.Meanwhile, UBS adjusted Astera Labs' (ALAB) price target to $400 from $205 while maintaining its neutral stock rating. Astera's shares were up more than 16%, the top gainer on the Nasdaq.
