"The on-again, off-again nature of U.S.-Iran diplomacy could mean earnings and jobs data will have to do the heavy lifting for the bulls this week," said Chris Larkin, managing director for trading and investing at E*TRADE from Morgan Stanley.
SpaceX SPCX.O will report on Tuesday its first quarterly results since going public. Its shares — trading below their $135 offering price for nearly three weeks — eased 1.4%.
Other AI-linked companies reporting this week include Palantir PLTR.O, Advanced Micro Devices AMD.O as well as data storage companies SanDisk SNDK.O and Western Digital WDC.O.
Micron MU.O lost 3.4% after Reuters reported that Chinese rival CXMT 688825.SS is considering a second memory-chip plant in Beijing.
At 9:35 a.m. ET, the Dow Jones Industrial Average .DJI rose 604.70 points, or 1.15%, to 53,089.73, the S&P 500 .SPX gained 42.16 points, or 0.56%, to 7,531.88 and the Nasdaq Composite .IXIC gained 124.05 points, or 0.49%, to 25,497.90.
Wall Street had a rough July due to global concerns on the AI trajectory, future interest rates and the U.S.-Iran conflict.
A report that Federal Reserve chair Kevin Warsh raised the idea of scheduling fewer rate-setting meetings — in line with his plan to reduce Fed rate guidance — added to uncertainties.
New York Fed President John Williams on Monday expressed optimism that inflation pressures are on track to ease gradually.
Hotel operator Marriott International MAR.O fell 4.2% after forecasting third-quarter profit below expectations, while Tyson Foods TSN.N dropped 3.3% after cutting its annual profit forecast.
The week is also packed with several labor market reports, including the official nonfarm payrolls figures due on Friday.
Advancing issues outnumbered decliners by a 1.89-to-1 ratio on the NYSE and by a 1.49-to-1 ratio on the Nasdaq.
The S&P 500 posted 10 new 52-week highs and no new lows while the Nasdaq Composite recorded 62 new highs and 43 new lows.
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