The Dow Jones Industrial Average and other major stock indexes rallied Monday amid rising hopes that the ongoing Israel-Iran conflict could cool down in coming days. Meanwhile, Cathie Wood stock Roku surged on the stock market today but the noted investor loaded up on a different company's shares.
The Dow Jones industrials remained positive despite coming off highs for the day. The index climbed 317 points, or 0.8%. Goldman Sachs American Express and Nike fared best with gains of more than 2% each. McDonald's, Verizon Communications and Johnson & Johnson continued to lag, all dropping in the 1%-2% range.
The Nasdaq composite fared best out of the major indexes, jumping 1.5%. Chip play Advanced Micro Devices and Warner Bros Discovery were strong on the tech-heavy index. AMD surged nearly 9% on a price target increase from Piper Sandler while Warner popped more than 7% after bondholders approved a plan to split the company in two.
Laggards included Diamondback Energy, which slipped 2.5%. Charter Communications and O'Reilly Automotive also had tough innings, with the former stock down more than 3% and the latter down 2%.
Stock Market Today: Tech Stocks On Top As Energy Lags
The S&P 500 also flexed its muscles, turning in a lift of 0.9%. The benchmark index's sectors were mostly higher on the stock market today. Technology and communication fared the best. Energy and utilities were areas lagging the most.
Perfume play Estee Lauder smelled of roses here, gaining nearly 11%. It rose after the death of Chairman Emeritus Leonard Lauder raised speculation about a potential sale of the company.
Casino stock MGM Resorts International also shined with a pop of more than 8%. It gained after after BetMGM, which is jointly owned by MGM and Entain, raised its outlook for 2025. It now expects net revenue of at least $2.6 billion, up from a prior forecast for $2.4 billion to $2.5 billion.
A number of defense plays were lagging. Lockheed Martin dropped 4% and tested buyers at its 50-day moving average. Northrop Grumman and L3Harris Technologies were hot on its tail with declines of nearly 4% each.
Volume was mixed, as it rose on the Nasdaq exchange but fell on the New York Stock Exchange vs. the same time on Friday. Advancers led decliners by roughly 2-to-1 on both exchanges.
Meanwhile, small caps were also rising, with the Russell 2000 index up nearly 1%. The index is trading at its 10-day line but is lagging its 200-day moving average. Growth stocks were strongest of all, though. The Innovator IBD 50 exchange traded fund was up nearly 3% despite coming off session highs. The fund's rise for the year now sits around 8%.
The 10-year Treasury yield rose three basis points to 4.46%. Oil prices fell, with West Texas Intermediate futures dropping more than 2% to just over $71.20 per barrel.
Roku Stock Soars But Cathie Wood Buys This
Cathie Wood stock Roku soared Monday after it announced a partnership in internet television advertising with Amazon.com's Amazon Prime network.
The arrangement will give advertisers access to the largest authenticated connected TV footprint in the U.S. exclusively through Amazon DSP. Ad buyers will be able to reach about 80 million households.
Roku soared more than 10% on the stock market today. Cathie Wood is a big backer of the stock, and it makes up a large position in her ARK Innovation exchange traded fund.
However the famed investor, who also serves as Ark Invest's chief investment officer, preferred to load up on a potential bargain during Friday's stock market reversal.
The ARK Innovation fund snapped up 2,830,022 shares in Archer Aviation Friday. The move paid off immediately, as it rallied around 4% on the stock market today.
Archer came 28% off its recent high of 13.92 at Friday's close, a relatively gentle decline compared to some of the fund's previous dip purchases.
San Jose, Calif.-based Archer developing "flying taxis" to transport passengers on short routes.
3:41 p.m. ET
Magnificent Seven: Meta Shines, Nvidia Strong
One important barometer of the stock market is the daily performance of the Magnificent Seven group of megacap tech plays.
Meta Platforms fared best as it rallied nearly 3%. It is now extended past a cup-with-handle entry of 662.67, MarketSurge analysis shows.
Outstanding overall performance is reflected in its IBD Composite Rating of 96. Earnings are seen rising 7% this year before accelerating to 11% growth in 2026.
Meta stock got a boost after the social media firm said it would company introduce advertising to its WhatsApp platform. It shall also look to rake in revenue from its WhatsApp's Channels feature through both subscriptions and advertising.
Nvidia was also strong as it turned in a gain of just over 2%, while Amazon.com rose 2%.
Tesla, Google-parent Alphabet and Apple were each up around 1%. Microsoft followed closely behind with a 0.6% lift.
Strong Bond Auction Soothes Worries
One worry for investors has been whether appetite for U.S. debt could be reducing amid soaring government spending. However, Monday's 20-year treasury note auction was stronger than expected, with a $13 billion sale.
The highest yield government offered was 4.942%, lower than yields seen prior to the auction. This is a positive because when there is lower demand, the government has to offer a higher yield to tempt buyers.
There were also more direct bidders than usual, snapping up 19.9% of notes vs. the usual rate of 18.1%. The total number of indirect bidders, a proxy for foreign buyers, came in at 66.7%, just below the average of 67.3%.
Last week's auctions of 10-year and 30-year notes were also met with strong demand. There was also fair demand at a 3-year note auction last Tuesday.
2:32 p.m. ET
Stock Market Today: CoinDesk Surges
While stablecoin play Circle Internet was holding near highs for the day, a number of other cryptocurrency stocks were also rising.
Bitcoin itself is fighting back from recent lows, and was gaining again today. The price of bitcoin was up around 2% over the past 24 hours to just under $108,000 per token, according to CoinDesk.
While bitcoin has rallied back from Jan. 12 lows, it remains down nearly 4% from its all-time high of $111,891.30 reached on May 22.
The iShares Bitcoin Trust ETF, a member of the prestigious IBD Leaderboard list, is back near a cup base entry of 61.75. It comes after a successful test of buying support at the 21-day exponential moving average.
Cryptocurrency exchange play Coinbase Global left it for dust though, rallying more than 7%. It could be forming a new base amid recent tight trading. It has also been using its 21-day line as an area of support.
Strategy, formerly MicroStrategy, was off around 1%. Nevertheless, it continues to trade tightly near its short-term moving averages as well as the 50-day line.
Bitcoin miner Hut 8, previously a member of the IBD 50 list of leading growth stocks, jumped over 5%. It is holding clear of the 200-day moving average. Rival crypto mining play Riot Platforms was up more than 3%.
Mara, formerly known as Marathon Digital, rose nearly 2%. It is trading below its 200-day line but is above the 50-day moving average.
Iran Looks To De-Escalate: WSJ
One potential positive for stocks was reports that Iran is looking to ramp down hostilities with Israel.
The Wall Street Journal reported that Tehran has signaled through intermediaries that it would like to return to talks with the U.S. over its nuclear programs.
Middle Eastern and European officials told the WSJ that it would be open to more negotiations as long the U.S. does not join the current hostilities.
However, it remains to be seen whether Israel will be open to reducing current level of hostilities.
12:58 p.m. ET
This China Stock, Northern Trust Clear Entries
Monday's positive action led to further breakouts as the session wore on. Remember, IBD is recommending 80%-to-100% exposure at the moment.
Futu has moved past a weekly chart cup-with-handle entry of 118.52, according to MarketSurge analysis. The relative strength line is moving higher and it sits clear of its major and short-term moving averages. The China-based firm is a holding company that includes an online brokerage platform.
Analysts have been boosting estimates of late. Earnings are seen rising 40% to $7.13 per share this year. It is then expected to cool to 16% growth in 2026.
Futu is a member of the IBD Sector Leaders list. This is IBD's most powerful and stringent screen. So far in 2025 the stock has rallied by nearly 51%.
But while it has a best-possible IBD Composite Rating, it is worth noting institutional ownership is a weak point. In total, 18% of shares are held by funds, MarketSurge data shows.
Banking play Northern Trust is also making progress, and was sitting just above a weekly chart cup-with-handle entry at 110.85. This is a first-stage base, a bonus. Overall performance is strong, but not ideal, with its IBD Composite Rating coming in at 88 out of 99.
However, it currently holds top spot in the super regional banks industry group. Northern Trust is up more than 8% so far this year. This is better than the S&P 500's gain of less than 3%.
11:47 a.m. ET
Leader Clears Buy Point
Chili's parent Brinker International was another stock that was on maneuvers in early action. It has now cleared a cup-with-handle base with an ideal buy point of 177.97, MarketSurge analysis shows. It is actionable as much as 5% above this level. The stock was up nearly 4% in recent action.
Brinker is the parent company of Chili's and Italian-American chain Maggiano's. Results have been tasty of late, with the company serving up three quarters in a row of triple-digit earnings growth.
Earnings have grown by an average of 179% over the past three quarters. This is well in excess of the 25% growth sought by those following IBD investing principles. Technical performance is also strong, netting the stock a near-perfect IBD Composite Rating of 98.
It is also showing leadership, as it sits at the summit of IBD's retail-restaurants industry group. It is a member of the prestigious IBD Leaderboard list of top stocks.
10:48 a.m. ET
Leaderboard Stock Clears Entry
One stock that was making a bullish move in the early going was Leaderboard stock EQT. It has now moved above a three-weeks tight entry of 57.37. This is usually used as an opportunity to add shares to an existing position.
Shares are clearing the top of an actionable zone from a 55.34 double-bottom buy point. The stock was up nearly 2% in recent trades.
EQT is the largest producer of natural gas in the U.S., based on average daily volumes. It focuses on the Marcellus and Utica Shales, which are located in the northeast.
The firm could benefit from higher energy demand due to artificial intelligence. All-around performance is strong, which has netted it an IBD Composite Rating of 94 out of 99.
Stock Market Today: IPO Circle Internet Soars
Initial public offering stock Circle Internet put in an eye-catching move on the stock market today. Even though it was off opening highs, it remained up 23% in recent action.
Circle stock is trading more than five times its IPO price of 31 per share, which was itself above the expected range of 27 to 28. Circle provides a digital currencies platform, including stablecoin.
The stock got a lift last week after Shopify said it would enable payments in stablecoin for merchants on its payments platform.
Sentiment got a further boost after the Wall Street Journal reported Dow Jones stocks Walmart and Amazon.com are considering issuing their own stablecoins.
But traditional payment stocks such as Visa, Mastercard and American Express got hit last week. They recovered Monday, though, with each up around 2%.
9:43 a.m. ET
Meta Introduces Ads On WhatsApp
Meta Platforms stock advanced 2.6% after the company announced it would introduce advertising on WhatsApp. The Facebook parent currently is hovering just above a buy zone out of a cup-with-handle base.
Meta currently has a Composite Rating of 96 out of a best-possible 99 from Investor's Business Daily. Its Earnings Per Share Rating also stands at 96, while its Relative Strength Rating stands at 88.
9:27 a.m. ET
Stock Market Today: Nvidia, Palantir, Tesla Climb
Meanwhile, Nvidia climbed 1.3%, recovering a part of Friday's 2.1% decline. Shares are within striking distance of new highs.
Palantir Technologies jumped 2.5%, hitting a new high. Further, Tesla looked to add to Friday's 1.9% rally, with another 1.9% gain in morning trading Monday.
8 a.m. ET
Israel-Iran News, Fed Meeting To Start
After quickly establishing air supremacy, Israel has been striking key Iranian targets consistently. Iran has retaliated with several waves of ballistic missiles. Those making it through defenses have killed several Israeli civilians.
Israel expanded its targets over the weekend to strike Iranian energy assets, including a refinery, gasoline depot and a natural gas processing site. However, Israel so far has not hit Iran's oil fields or energy exports.
Elsewhere, the Federal Reserve's two-day policy meeting ends Wednesday with new interest-rate projections, followed by Fed Chairman Jerome Powell's news conference. With projections saying no chance of a rate cut, markets will focus on whether new projections match March's outlook for 50 basis points in rate cuts this year.
Meanwhile, May retail sales data is due out Tuesday. Sales are expected to fall 0.6% on the month amid lower auto sales, according to Econoday. Excluding autos, however, sales are forecast to rise 0.2%.
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Stock Market Today: Dow Jones Leader Amazon Below Buy Point
Elsewhere, Dow Jones e-commerce giant Amazon broke out past a 214.84 buy point in a cup with handle last week, MarketSurge chart analysis shows. Shares rose 0.6% in premarket trading Monday.
Friday's IBD Stock Of the Day was Chili's parent Brinker International, which is just below a 177.91 cup-with-handle entry. Brinker stock rallied 1.1% in premarket trades Monday.
Finally, Barrick Mining topped a 21.11 entry in a cup with handle during Friday's 3.2% rally. But, Barrick stock dropped more than 1% in early action Monday.
The ongoing stock market uptrend provides a bullish setting for raising exposure, but investors still need to watch for volatility. Investors should buy stocks with a 21-day average true range, or ATR, of up to 8%. But they should be wary of being too concentrated in high-octane names.
Check out IBD MarketSurge's "Breaking Out Today" list for top growth stocks that are moving above correct buy points. Investors also can find potential breakouts on the "Near Pivot" list. Further, to find additional stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
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Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
