US stocks closed sharply higher on Monday, with the S&P 500 rising 1.2%, the Nasdaq 100 surging 2.3%, and the Dow Jones gaining 307 points to finish at a fresh record high, as investors reassessed the AI trade following the recent selloff.
Sentiment was also supported by easing tensions between the US and Iran over the weekend, with President Trump saying peace talks with Iran are set to resume on Tuesday.
Communication services, consumer discretionary, and technology stocks led the advance.
Alphabet jumped 5% on its first trading day as a Dow component replacing Verizon, while Nvidia gained 1.3%, Amazon climbed 3.2%, Meta advanced 2.2%, and Tesla soared 8.5%.
Comcast also rallied 4.5% after announcing plans to spin off its media and technology businesses into two separately traded public companies.
On the downside, materials was the weakest-performing sector.
Apple fell 0.7%, Microsoft declined 1.2%, Walmart slipped 0.9%, and Verizon tumbled 5.2%.