Wall Street is recovering strongly despite Middle East tensions, with artificial intelligence stocks leading the gains.

US markets opened strongly on Monday, signaling a notable recovery after the sharp sell-off that hit stocks at the end of last week. Despite escalating tensions between Iran and Israel over the weekend, which initially pushed oil prices higher, investors quickly returned to buying shares, contributing to the rebound in major indices.

The Nasdaq index recorded gains of more than 1% during the first hours of the session, while the Dow Jones Industrial Average and the S&P 500 also rose. Artificial intelligence stocks, which came under heavy pressure last week, were among the biggest gainers in today’s trading, indicating a return of investor appetite for the technology sector.

This rebound comes after a difficult session on Friday, when markets experienced a sharp decline following the release of the stronger-than-expected US jobs report for May, which raised concerns about continued inflationary pressures and the possibility that the Federal Reserve will maintain its tight monetary policy for a longer period. Profit-taking in artificial intelligence stocks also contributed to pushing the Nasdaq down by more than 4% during that session.

US stock futures initially pointed to a continuation of the downward trend at the start of trading on Sunday evening, particularly after renewed clashes between Iran and Israel over the weekend. However, market sentiment gradually improved as the morning progressed, especially after Iran announced the end of its military operations against Israel, which helped to ease geopolitical concerns.

The sharp rise in oil prices at the start of trading also eased, while US Treasury yields pared back their earlier gains, providing additional support for stocks.

In contrast, the picture was not as positive in global markets, with Asian stocks coming under significant pressure. The sharpest losses were in South Korea, where the Kospi index fell by more than 8%, impacted by sharp declines in the shares of semiconductor giants such as Samsung and SK Hynix.

Investors are anticipating a busy week of events that could shape market direction in the coming period. US inflation data for May is due on Wednesday, providing crucial clues as to whether the Federal Reserve will raise interest rates again this year. Markets are also gearing up for the highly anticipated initial public offering (IPO) of SpaceX, one of the most eagerly awaited in recent years.