US Stocks Open Higher as Tech Rebound Loses Steam

US stocks opened higher on June 29 after the US and Iran halted hostilities.

The Nasdaq Composite, which had climbed more than 1% shortly after the open, pared its gain to 0.1% by 10:15 a.m. Eastern time. The S&P 500 rose 0.1%, while the Dow Jones Industrial Average added 0.3%.

Micron Technology, which had surged after reporting earnings last week, fell 8% to $104 on June 29. SanDisk also dropped 8%. Nvidia, Intel and AMD all traded lower, while only TSMC's US-listed ADR was in positive territory.

SpaceX opened up nearly 3% after last week's announcement that it would be fast-tracked into the Nasdaq-100 beginning July 6. The stock later turned lower.

Rocket Lab rose 11% after announcing plans to acquire satellite-phone pioneer Iridium Communications for $54 a share in a cash-and-stock deal. Iridium jumped 21%.

Comcast climbed 8% after announcing plans to separate its media and technology businesses into two publicly traded companies. The spinoff is expected to be completed in about a year.

The US and Iran agreed on June 28 to halt hostilities after military clashes late last week and to allow commercial vessels to pass freely through the Strait of Hormuz.

Oil prices edged higher after the US-Iran conflict around Hormuz. Brent crude for August delivery, the international benchmark, rose 0.6% to $72.47 a barrel. West Texas Intermediate gained 1.2% to $70.06 a barrel, trading back above $70.

The yield on the 10-year US Treasury was little changed at 4.374%, while the two-year yield rose 1.9 basis points to 4.107%.

US stocks were mixed last week as money rotated out of technology shares and into other sectors. The Nasdaq Composite fell 4.6% as Nvidia and Alphabet dropped 2% and 4.6%, respectively, while SpaceX tumbled 17%.

The Dow, which has a smaller weighting in technology stocks, ended last week higher as Merck and Johnson & Johnson rose 13% and 11.5%, respectively.

Kim Jung-a, guest reporter, Hankyung.com, kja@hankyung.com