U.S. stocks settled higher on Monday, with the Nasdaq Composite gaining more than 500 points during the session, while the Dow Jones Industrial Average closed above the 52,000 mark. The market rally was broad-based, with communication services, consumer discretionary, and information technology stocks recording the biggest gains, while materials and real estate stocks declined. The CNN Money Fear and Greed index showed some improvement in overall market sentiment, moving to the "Fear" zone on Monday from a prior reading of 25.1 to 26.5.

Market Performance

The Dow Jones closed higher by around 307 points to 52,182.74. The S&P 500 surged 1.18% to 7,440.43, while the Nasdaq Composite climbed 2.07% to 25,820.14. The S&P 500 had fallen around 2% last week, and the Nasdaq had tumbled 4.6% in the period, though the Dow recorded gains, rising 0.6% last week.

Corporate Movers

Google parent Alphabet Inc. (NASDAQ: GOOG, GOOGL) gained nearly 5% on Monday as the company replaced Verizon Communications Inc. (NYSE: VZ) in the Dow Jones Industrial Average. Shares of Comcast Corp. (NASDAQ: CMCSA) jumped around 4.5% after the company announced it will separate into two independent publicly traded companies through a tax-free spin-off of NBCUniversal and Sky.

Geopolitical Developments

The Strait of Hormuz de-escalation narrative gained traction as President Donald Trump confirmed that "Iran has requested a meeting" set for Doha. Envoys Steve Witkoff and Jared Kushner are traveling to Qatar, with U.S. and Iranian technical teams due to meet mediators midweek.

Upcoming Earnings

Investors are awaiting earnings results from Nike Inc. (NYSE: NKE), Constellation Brands Inc. (NYSE: STZ), and Progress Software Corp. (NASDAQ: PRGS) today.

U.S. stocks settled lower on Friday, with the Nasdaq Composite falling for the fifth straight session as chip stocks declined. The CNN Money Fear and Greed Index showed almost no change in overall market sentiment, remaining in the "Extreme Fear" zone at a reading of 24.8, compared to a prior reading of 24.4. The index is calculated based on seven equal-weighted indicators, ranging from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.

The Dow Jones closed lower by around 44 points to 51,876.11. The S&P 500 fell 0.05% to 7,354.02, while the Nasdaq Composite dipped 0.24% to 25,297.62 during the session. For the week, the S&P 500 fell around 2%, and the Nasdaq tumbled 4.6%, while the Dow rose 0.6%.

ON Semiconductor Corp. shares dipped around 24% on Friday after agreeing to acquire Synaptics Inc. in an all-stock deal valued at roughly $7 billion. Most sectors on the S&P 500 closed positively, with health care, consumer discretionary, and real estate stocks recording the biggest gains. However, industrials and information technology stocks bucked the overall market trend, closing lower.

On the economic data front, the goods trade deficit in the U.S. rose to $105.8 billion in May from $83 billion in the prior month, recording the widest gap in over one year. U.S. wholesale inventories rose by 0.3% month-over-month to $943.9 billion in May. The University of Michigan consumer sentiment index rose to 49.5 in June from a preliminary level of 48.9.

Investors are awaiting earnings results from Concentrix Corp and AeroVironment, Inc.