Stocks Rally to Start Week as Tech Leadership and Ceasefire Hopes Drive Rebound

The market kicked off the week with a strong advance, shaking off early geopolitical concerns as steady buying throughout the session lifted the S&P 500 (+1.0%), Nasdaq Composite (+1.2%), and Dow Jones Industrial Average (+0.6%). The move pushed the S&P 500 back into positive territory for the year, fully erasing losses tied to the onset of the Iran conflict.

Stocks opened lower after the U.S. and Iran failed to reach a longer-term ceasefire agreement over the weekend, compounded by President Trump’s announcement of a blockade on Iranian ports. However, selling pressure quickly dissipated, reflecting investor confidence that a resolution may still be within reach.

That optimism gained traction in the afternoon after CNN reported that the administration is exploring a second in-person meeting with Iranian officials before the current ceasefire expires. The headline reinforced expectations for a potential diplomatic off-ramp and helped sustain the market’s upward momentum.

Technology once again led the charge. The information technology sector (+1.3%) was among the first to turn positive, powered by a sharp rebound in software stocks following last week’s selloff. Oracle surged as the top-performing S&P 500 component, while the broader software space rallied strongly. Microsoft also stood out among mega-cap names, contributing to a 1.5% gain in the Vanguard Mega Cap Growth ETF.

Financials delivered another leg of leadership, with the financials sector (+1.7%) posting one of the strongest gains of the session. While Goldman Sachs dipped despite beating earnings expectations, its strong performance in investment banking and capital markets activity signaled improving conditions for the broader sector as earnings season unfolds.

Cyclical sectors also participated in the advance. The consumer discretionary sector (+0.9%) and communication services sector (+0.8%) both benefited from continued strength in mega-cap names, many of which pushed to fresh highs.

On the other side of the ledger, defensive sectors lagged. The utilities sector (-1.2%) and consumer staples sector (-1.0%) declined, with Conagra Brands among the notable laggards following news of an upcoming CEO transition.

Energy stocks were volatile, mirroring movements in crude oil. While the energy sector (+0.3%) finished slightly higher, it gave back much of its earlier gains as oil prices retreated from overnight highs near $105. Crude ultimately settled at $98.97 per barrel, up modestly on the day.

Broader participation strengthened as the session progressed. The Russell 2000 (+1.5%) outperformed, signaling a clear risk-on tone, while the S&P MidCap 400 (+1.1%) posted solid gains alongside large caps.

Overall, the session highlighted the market’s resilience. Stabilizing oil prices and renewed leadership from mega-cap and technology stocks have driven a sharp recovery over the past two weeks. While geopolitical uncertainty remains a key variable, investors appear increasingly willing to look through near-term volatility as focus shifts toward earnings season and the durability of growth trends.

Our FTinvest 11 model portfolio advanced 0.95% to close at 990.29, rebounding after last week’s mild pullback and moving closer to the key 1,000 level. The portfolio continues to recover momentum, though it remains below its all-time high of 1,039.51.

Based on the start-of-year level of 928.18, FTinvest 11 is now up approximately +6.69% year-to-date, reflecting a solid performance in early 2026. The latest gain highlights the portfolio’s resilience and the strength of its value-driven approach as it continues to navigate evolving market conditions.