Volkswacht Bodensee - Tech rebound lifts Dow to record, yen hits 40-year low against dollar

While a return of military strikes between Iran and the United States boosted crude prices, major US indices spent the entire day in positive territory.

The Dow climbed 0.6 percent to a fresh record, while the tech-focused Nasdaq jumped more than two percent.

"So far, the start of this short week is really about rotation back into tech, which is leading the gains, both the software and semiconductor space, both participating," said Angelo Kourkafas of Edward Jones.

Last week, semiconductor shares were under pressure on worries that soaring valuations have gotten out of control. But that retreat set the stage for renewed buying on Monday, analysts said.

AI leader Nvidia tacked on 1.3 percent, while other chip companies such as AMD, Broadcom and Intel won more than two percent.

"Technology was the worst performing sector over the course of the last two weeks," said Art Hogan of B. Riley Wealth Management. "So you'll likely see some bargain hunting in those spaces, and I think that's helping move the broad market a little bit higher."

Oil prices, which last week fell to pre-war levels, rose modestly on Monday.

While Washington said it had agreed with Iran to halt the attacks and continue talks, the strikes again disrupted shipping through the vital Strait of Hormuz over the weekend.

"The impact on oil prices remains relatively contained," said Ipek Ozkardeskaya, senior analyst at Swissquote.

Europe's main markets ended the day lower.

Asian stock markets fared better, with Tokyo, Hong Kong and Shanghai all closing higher.

The tech rally this year has sent Seoul, Tokyo and Wall Street's three main indexes to record highs, with SK hynix soaring 300 percent in the first six months of the year.

On the economic front, investors are looking ahead to the release of US jobs data this week, which could have a bearing on the Federal Reserve's monetary policy plans.

The bank has taken a more hawkish turn amid concerns over surging inflation caused by the Iran war.

That has had an impact on the dollar and its main rivals, including the yen, which fell to 161.96 to the dollar, a level last seen in December 1986.

"Thursday's US payrolls report looms as the week's defining event," said David Scutt, market analyst at Forex.com. "Unless Kevin Warsh or Japanese authorities deliver a genuine surprise beforehand, the labor market report is likely to determine whether markets continue to build on the hawkish Fed repricing seen in recent months, or start to unwind it."

Eyes will also be on the European Central Bank's annual forum held in Portugal this week, which the Federal Reserve's Kevin Warsh is expected to attend.

- Key figures around 2020 GMT -

New York - Dow: UP 0.6 percent at 52,182.74 (close)

New York - S&P 500: UP 1.2 percent at 7,440.43 (close)

New York - Nasdaq Composite: UP 2.1 percent at 25,820.14 (close)

London - FTSE 100: DOWN 0.2 percent at 10,484.22 (close)

Paris - CAC 40: DOWN 0.2 percent at 8,367.33 (close)

Frankfurt - DAX: DOWN 0.2 percent at 24,626.89 (close)

Seoul - Kospi: DOWN 0.2 percent at 8,394.65 (close)

Tokyo - Nikkei 225: UP 0.2 percent at 69,468.11 (close)

Hong Kong - Hang Seng Index: UP 1.6 percent at 23,026.68 (close)

Shanghai - Composite: UP 1.2 percent at 4,073.90 (close)

Brent North Sea Crude: UP 1.6 percent at $73.15 a barrel

West Texas Intermediate: UP 2.2 percent at $70.75 a barrel

Euro/dollar: UP at $1.1430 from $1.1384 on Friday

Pound/dollar: UP at $1.3261 from $1.3200

Dollar/yen: UP at 161.92 yen from 161.74 yen

Euro/pound: DOWN at 86.17 pence from 86.26 pence

C.Kreuzer--VB