US stocks moved higher on Monday as investors welcomed signs of easing tensions between the United States and Iran. Meanwhile, Comcast posted strong gains after unveiling plans to separate parts of its business into two publicly traded companies. Markets also shifted attention toward upcoming economic data and the start of the second-quarter earnings season.

Although the latest diplomatic developments improved market sentiment, investors continued to monitor the Middle East closely. At the same time, weakness in several semiconductor stocks limited broader gains, keeping traders focused on inflation, Federal Reserve policy, and corporate earnings over the coming weeks.

Wall Street gains as geopolitical concerns ease

Wall Street's three major indexes traded higher after reports indicated that the United States and Iran had agreed to pause hostilities following military exchanges over the weekend. According to reports, technical teams from both countries are expected to meet in Doha to continue work on implementing an interim peace agreement.

The easing tensions reduced immediate concerns about disruptions in the Strait of Hormuz, one of the world's busiest energy shipping routes. However, oil prices remained higher as traders assessed whether the ceasefire would hold. Brent crude traded above $72 per barrel, while West Texas Intermediate crude stayed above $70.

Market participants remained cautious despite the diplomatic progress. Peter Andersen, founder of Andersen Capital Management, said, "There have been several false starts in peace negotiations. I would expect most market participants to remain in a holding pattern through the rest of this week."

Eight of the eleven S&P 500 sectors traded higher during the session. Communication services led the gains after Comcast announced plans to separate NBCUniversal and Sky from its broadband and wireless operations through a tax-free spin-off.

Comcast rallies while technology stocks remain mixed

Comcast shares surged nearly 10% after revealing its restructuring plan. The separation is expected to create two independent publicly traded companies over the next year. Investors responded positively as the company seeks to streamline its operations.

Alphabet also moved higher after joining the Dow Jones Industrial Average, providing additional support to major indexes. Meanwhile, Nasdaq confirmed that SpaceX will join the Nasdaq-100 Index on July 7, lifting its shares during Monday's trading session.

Technology stocks produced mixed results. Memory chip makers Micron and Sandisk declined sharply, while Intel also traded lower. The pullback followed renewed concerns about AI-related spending and elevated valuations across semiconductor companies.

Jed Ellerbroek, portfolio manager at Argent Capital Management, said, "We're in the biggest momentum market in decades, and those momentum stocks are going to be exceptionally volatile. We're seeing that today with Micron."

Investors shift focus to earnings and economic data

Attention is now turning toward the second-quarter earnings season, which begins in the coming weeks. Analysts expect company results to provide fresh direction after strong earnings helped drive market gains over the past year.

Ben Snider, chief US equity strategist at Goldman Sachs, said, "The 21% S&P 500 return over the past 12 months has been driven entirely by earnings, making the upcoming Q2 2026 reporting season an important catalyst for the forward trajectory of the market."

Investors are also preparing for the release of the June US employment report later this week. The data could influence expectations for future Federal Reserve interest rate decisions as policymakers continue monitoring inflation and labor market conditions.

Elsewhere, Martin Marietta Materials fell after announcing a $13.5 billion merger with limestone supplier Lhoist North America. Viridian Therapeutics also gained after receiving US Food and Drug Administration approval for its thyroid eye disease treatment.

Market breadth remained positive during the session, with advancing stocks outnumbering declining issues on both the New York Stock Exchange and the Nasdaq. Investors continue monitoring developments in the Middle East, corporate earnings, and upcoming economic data as markets search for fresh direction.

Also Read: Crude Oil Prices Rise as US-Iran Escalation Revives Supply Fears, Brent Holds Above $70