US Indices Forecast: Tech Stocks and Fed Policy Drive Market Outlook After Iran Strike

Dow Gains as Tech and Crypto Rally; Markets Absorb Iran Strike, Watch Oil Prices

U.S. equities rose Monday as markets looked past a major U.S. military strike on Iranian nuclear facilities, focusing instead on resilient tech performance and relatively stable oil prices. The Dow added 200 points, while crypto and cybersecurity stocks posted notable gains. Traders assessed geopolitical fallout but found comfort in limited immediate supply disruptions and dovish Federal Reserve commentary.

How Did Markets React to the Iran Strike?

Despite the high-profile B-2 bomber assault on Iranian sites in Fordow, Natanz, and Isfahan, markets responded with restraint. Wall Street viewed the strike as a long-anticipated move, reducing uncertainty rather than adding to it. Wedbush’s Dan Ives said the operation removed an “overhang,” boosting investor sentiment, particularly in tech. He noted growing confidence that Iran’s retaliatory capabilities have been weakened, lessening the risk of broad market contagion.

Will Oil Stay Contained Even if the Strait of Hormuz Is Threatened?

Crude briefly spiked Sunday night but fell more than 1% Monday as traders weighed President Trump’s comments urging low oil prices. WTI settled at $74.48, up 0.87%, while Brent gained 0.70% to $77.55. Natural gas and refined products saw marginal increases.

Though Tehran’s parliament supported a resolution to close the Strait of Hormuz, the move requires further approval and is not yet operational. Traders remained cautious but not alarmed, with analysts suggesting that ample global supplies and Iran’s limited support base could cap oil’s upside.

Where Are Traders Seeing Opportunity in Tech and Crypto?

Tech stocks remained firm, with cybersecurity plays emerging as a short-term hedge. Ives highlighted names like Palo Alto, CrowdStrike, Zscaler, and CyberArk as potential winners if Iran resorts to cyber retaliation.

AI and cloud leaders—Nvidia, Microsoft, Amazon, and Palantir—were also flagged for potential buying opportunities. Meanwhile, digital assets rallied sharply:

Bitcoin surged 2.32% to $101,384, Ether rose 3.27%, and Solana advanced 4.18%, driven by safe-haven interest and growing optimism for decentralized assets during geopolitical unrest.

What Signals Are Coming from the Federal Reserve?

Adding to Monday’s bullish tone, Fed Governor Michelle Bowman signaled support for a potential rate cut at the July meeting, echoing Governor Waller’s Friday remarks. The dovish lean helped offset geopolitical anxiety and bolstered rate-sensitive tech stocks. With inflation data easing and Middle East tensions yet to disrupt global supply chains materially, expectations for a summer cut are building.

Outlook: Can Markets Sustain the Upside?

Traders are watching Iran’s next steps closely, especially any actions targeting U.S. forces or oil chokepoints. While short-term volatility is likely, the lack of broad military escalation and continued Fed support have given equities room to rise. Focus now shifts to energy infrastructure and cyber risk as barometers of geopolitical fallout, with sector rotation into tech and digital assets expected to continue if traditional safe havens remain calm.

More Information in our Economic Calendar.