09.03.202620:02:01UTC+00US Stocks Recover to Close Much Higher

US equities staged a sharp reversal on Monday, with the S&P 500 climbing 0.9%, the Dow advancing 0.5%, and the Nasdaq jumping 1.3%. The shift came as growing expectations of a rapid resolution to the Middle East conflict eased the stagflation concerns that had earlier sent the major averages sharply lower. President Trump indicated that the military campaign against Iran was nearing completion and that the Strait of Hormuz was reopening to maritime traffic.

The announcement triggered a steep selloff in WTI crude, which fell to about $86 per barrel from overnight highs of $119 that had threatened global energy stability. While financials such as Wells Fargo remained under pressure, the semiconductor sector delivered substantial support, with Broadcom and AMD each gaining more than 4.6%.

Investors rotated out of energy-driven panic trades and back into high-quality growth names, a move reinforced by Morgan Stanley analysts, who argued that the US market is likely moving beyond its rolling correction as underlying earnings growth remains solid.