Here's what happened to the stock market on Monday

CNBC Markets Now: January 06, 2020
CNBC Markets Now: January 06, 2020

Dow Jones Industrial Average rises 68 points

The Dow gained 68.50 points, or 0.24% to end the day at 28,703.38 after falling more than 200 points earlier in the session. The S&P 500 closed 0.35% higher at 3,246.28. The Nasdaq Composite advanced 0.56% to 9,071.46. Stocks stabilized Monday after Friday's sharp sell-off as investors remained optimistic about the market's fundamentals.

Stocks weather Iran headline risk

Despite all the headlines surrounding the conflict between Iran and the U.S., the stock market was largely unfazed Monday. The Dow quickly bounced back from its session lows along with the S&P 500 and Nasdaq. One of the main reasons why the market is not overly concerned about the situation is how unlikely any further escalation seems. To be sure, investors shored up positions in gold as a potential hedge. Bottom line: The market doesn't think this latest flare-up in U.S.-Iran relations will lead to a greater conflict. If it does, however, expect more volatility down the road.

Alphabet leads FANG higher

Google-parent Alphabet rose 2.67% to an all-time high after being upgraded by an analyst at Pivotal Research, leading the rest of the so-called FANG stocks higher. Facebook shares gained 1.88% while Amazon advanced 1.49%. Netflix closed 3.05% higher.

What happens next?

Investors will be on the lookout for fresh data on the U.S. services sector on Tuesday along with the latest trade deficit numbers. Read more here.

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