Major United States benchmark averages ended mixed on Monday (Tuesday AEST), with the Nasdaq and semiconductor stocks leading gains as investors returned to technology names following Friday's sharp market sell-off.
The Dow Jones Industrial Average fell 80.8 points, or 0.2%, to 50,786.0. The S&P 500 rose 22.0 points, or 0.3%, to 7,405.7, while the Nasdaq Composite advanced 220.2 points, or 0.9%, to 25,929.7.
Investor sentiment was supported by signs of de-escalation in the Middle East after Iran and Israel indicated they had halted attacks against each other.
The pause followed an appeal from U.S. President Donald Trump urging both sides to "immediately stop shooting".
The latest exchange marked the most direct confrontation between Iran and Israel since an April ceasefire in the conflict. Despite the improved geopolitical backdrop, stocks finished below their session highs, with the Dow ending in negative territory.
Technology shares drove much of the market's advance. Apple shares fell 1.9% after giving up earlier gains despite the company unveiling a range of artificial intelligence enhancements for its Siri voice assistant.
Intel surged 11.2% after The Information reported that Alphabet's Google had placed an order for the manufacture of more than three million tensor processing units in 2028.
The rebound followed Friday's broad market decline, which came after a series of record highs across major indices.
Investor concerns were heightened by weaker-than-expected results from chipmaker Broadcom, which raised questions about the pace of growth in the semiconductor sector.
Stronger-than-expected U.S. employment data for May also weighed on sentiment, prompting traders to reassess expectations for interest rates this year.
Broadcom recovered some ground on Monday, gaining 2.8%.
Investors also continued to assess the implications of SpaceX's initial public offering on Friday, which some market participants view as a test of investor appetite for high-profile growth stocks amid concerns about market exuberance.
Among other notable movers, Marvell Technology jumped 9.6% after confirmation that the chipmaker will join the benchmark S&P 500 before trading begins on 22 June.
In the healthcare sector, Eli Lilly rose 1.6% after trial results showed its next-generation obesity treatment, retatrutide, reduced the severity of sleep apnoea while also supporting weight loss and alleviating knee pain.
Bond yields moved higher, reflecting ongoing interest rate uncertainty. The yield on the benchmark 10-year U.S. Treasury note rose 0.8% to 4.568%, while the two-year Treasury yield increased 0.5% to 4.166%.
