Iran deal trader playbook: Stick with tech

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The U.S. and Iran reached a preliminary agreement that would end a war that sent energy prices soaring and sparked volatility across financial markets. Going forward, the move for investors may be to stay invested in one of the most reliable parts of the stock market: tech. Tech has been hands down the best performing corner of the market since the two countries agreed to a ceasefire on April 8 — especially chipmakers. The iShares Semiconductor ETF (SOXX) has surged 71% since then, with Micron Technology , Marvell and Arm Holdings more than doubling since then. The S & P 500 tech sector has also jumped 34% in that time to fuel the broader market to record levels, while the Nasdaq Composite has popped 17% in that time. JPMorgan's market intelligence team turned tactically bullish on the stocks as a deal to end the U.S.-Iran war could "catalyze a broad risk-on impulse across equities." "That said, the historical pattern suggests that 'everything rally' can fade into concentrated leadership following the initial impulse, so we continue to favor Tech and maintain a tactical long in Financials," they added. There's also the possibility of the deal falling through between now and Friday — when the agreement is expected to be signed. This could knock some momentum out of tech. Vice President JD Vance told CNBC's " Squawk Box " on Monday that "a lot" details still need to be ironed out. Though, he noted that the U.S. has " all the cards ." "We would like to return to the Tech and Cyclical barbell but stay nimble on the rate-sensitive or Hormuz reopening trades: stay long in the global AI theme with heavier weight on US vs. Asia," wrote JPMorgan's market intelligence team.