Traders work on the floor of the New York Stock Exchange during morning trading on June 04, 2026 in New York City.

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The S&P 500 and Nasdaq Composite were higher on Monday as chip stocks rebounded from Friday's rout and President Donald Trump tried to maintain a fragile ceasefire despite Iran and Israel trading strikes.

The broad market index and tech-heavy Nasdaq were up 0.6% and 1.3%, respectively. The Dow Jones Industrial Average fell 26 points, or 0.1%.

Shares of Micron Technology, the memory chipmaker that's led the latest leg of the bull market, were up 10% after falling 13% on Friday. Shares of Nvidia and Broadcom were also higher.

The Nasdaq Composite dropped 4.2% on Friday, its worst drop since April 2025 as investors took profits on chip stocks on concern the shares had gone too far given the uncertain economic backdrop. The iShares Semiconductor ETF was 6% higher Monday after plunging 10% on Friday, its worst day in more than six years.

Asia-Pacific markets tanked Monday in response to the Nasdaq drop Friday, with South Korea's benchmark Kospi leading declines, falling more than 8% to end at 7,484.41. Japan's Nikkei 225 dropped 3.85% to 64,024.6. Meanwhile, Europe's Stoxx 600 was marginally lower on Monday.

Strikes by Iran on Sunday raised fresh concerns about the stability of the ceasefire between Washington and Tehran. The reported missile attack followed a post on X by Iranian Parliament Speaker MB Ghalibaf, who argued that the U.S. naval blockade and alleged breaches of agreements related to Lebanon constitute violations of the ceasefire.

Oil prices gained as Israel carried out a "large-scale strike on strategic defense systems" on Monday, according to the IDF X account, in response to Iran attacks. But Trump said Israel and Iran "are looking to do an immediate ceasefire" and that negotiations were proceeding despite the attacks. Trump earlier ordered that Iran and Israel "must immediately stop" attacking.

Iran's Ministry of Foreign Affairs later told CNBC Monday that the country's military has ended military operations against Israel. However, Iran warned it would restart hostilities if Israel continues attacking Lebanon.

Oil traded off its highest levels of the session after those developments, with West Texas Intermediate last trading higher by almost 1% to around $91 a barrel.

"This continues to be a market that is evaluating the catalysts and the potential risks and placing them on a scale," said William Northey, investment director at U.S. Bank Asset Management. "The solid fundamentals that exist here in the U.S. – based on consumer strength, capital expenditures, the corporate earnings cycle – have been outweighing in large part the risks associated with the Middle East conflict."

However, the longer the conflict exists, the "more potentially damaging it can be to fundamental economic activity [due] to the creation of inflation pressures that are beyond transitory," he added.

In the week ahead, investors will be focused on inflation data and the public debut of Elon Musk's SpaceX on Friday. The offering is expected to be one of the largest in Wall Street history and could be the market's biggest test yet of the AI valuation narrative.

"Blockbuster offerings have marked the peak of excess in past market cycles, so there seems to be an awkward silence around what this could signal for sentiment," said Callie Cox, chief market strategist at Ritholtz Wealth Management. "Many investors seem restrained and skeptical, but can that temperament exist when the biggest IPO of all time is on deck?"