Markets Resume Risk-On Mode as U.S. Stocks Rebound Amid Easing Geopolitical Fears

Wed, 06 May 2026 02:19:00 +0200

Wall Street returned to a more risk‑on posture on May 5, 2026, as major U.S. indexes climbed after a string of volatile days driven by Middle East tensions and oil‑price swings. The Dow Jones Industrial Average advanced, while the S&P 500 and the tech‑heavy Nasdaq Composite also posted gains, reflecting a renewed appetite for equities and growth‑oriented sectors. Investors appeared encouraged by a moderation in crude‑oil prices and a calmer tone from policymakers, which helped offset lingering worries about escalation in the Strait of Hormuz and broader U.S.–Iran frictions.

The session also highlighted selective strength in technology and AI‑related names, where solid earnings and upbeat guidance helped lift sentiment. At the same time, energy and defense‑linked stocks traded more cautiously as traders weighed the durability of today’s rebound against the risk of fresh geopolitical flare‑ups. Overall, the day’s move signaled that the market is still in a fragile, news‑driven state, bu