US equities recovered from early losses on Monday as investors weighed the potential impact of escalating conflict in the Middle East on the US economy. The three major stock indices ended near the flatline after a volatile session. US forces killed Iran’s supreme leader following a series of weekend attacks, prompting Iran to launch strikes on multiple targets across the region. Most sectors rebounded after steep declines tied to a global de-risking move, but credit-sensitive segments remained under pressure as higher energy prices and an unexpected jump in the ISM manufacturing prices index reignited worries that the Federal Reserve may delay interest rate cuts. Chipmakers and other large technology names were mostly weaker, with Broadcom, AMD, and Alphabet each falling more than 1%. In contrast, Nvidia rose 3% and Palantir climbed 6.5%, partially reversing last week’s losses. Bank stocks were subdued, with JPMorgan and Bank of America slipping amid ongoing concerns over private credit exposure and defaults by major clients.