U.S. equities climbed on Monday, erasing much of last week’s selloff as investors shifted focus to sector strength. Technology names led the rally, with chipmakers posting their strongest day in a year, lifting the index. The bounce came amid heightened Middle East tensions that kept oil prices elevated and buoyed energy‑related stocks. The Dow Jones Industrial Average rose about 0.7%, while the Nasdaq gained 1.2%.

Analysts note that the semiconductor surge reflects renewed demand for high‑performance computing and automotive chips, sectors that have lagged earlier in the cycle. The rally also helped reverse a modest decline in the S&P 500, narrowing the gap with the Nasdaq. Traders watched the Middle East flare‑up closely, gauging its impact on global supply chains and commodity markets.

The market’s rebound underscores how geopolitical risk can quickly shift capital toward commodities and defensive tech plays. With oil sustaining higher levels, energy firms enjoyed a lift that offset lingering concerns about inflation. Investors will likely monitor both chip earnings and any escalation in the region, as each factor can significantly swing sentiment in the near term.