At the close, the Dow Jones Industrial Average had fallen 0.2 percent. But the broad S&P 500 index was up 0.3 percent and the tech-heavy Nasdaq Composite Index was up 0.9 percent.
This followed a very dark Friday, when the Nasdaq fell 4.2 percent.
Then it was AI-related companies that took the hit - now they have bounced back across the board.
Chip companies Micron Technology and Marvell Technology rose 9.9 and 9.6 percent, respectively.
A long list of industry peers - such as Nvidia, Broadcom and Qualcomm - also climbed.
Stock markets around the world shook off the fallout when US President Donald Trump called on Israel and Iran to cease fire, and the situation seemed to cool down.
It also caused oil futures to fall back after initially rising.
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