* Wall Street indexes bounce after Friday's rout

* Earlier, KOSPI dived 8%, Nikkei dropped 3.9% as AI rally

stalled

* Oil up on Middle East tensions but off highs

* Shifting Fed rate expectations keep investors jittery

(Updates prices to U.S. morning trading)

By Sinéad Carew and Samuel Indyk

NEW YORK/LONDON, June 8 (Reuters) - MSCI's global equities

index recovered some earlier losses with support from a

bounce-back in technology, and oil futures pared gains on Monday

as Iran and Israel said they had halted attacks on each other

after an appeal from U.S. President Donald Trump.

The dollar eased, although uncertainty remained as Tehran

said it would resume strikes if Israel continued to hit

Iran-backed Hezbollah in Lebanon. Israel had struck a

petrochemical plant in southwestern Iran and Iran's Islamic

Revolutionary Guard Corps said it retaliated with a strike aimed

at a similar Israeli plant in the city of Haifa.

In energy markets, U.S. crude futures were up 1.42%

at $91.83 a barrel after earlier trading above $95 a barrel,

while Brent was at $94.78 per barrel, up 1.82% on the

day, after earlier rising above $98 a barrel.

Wall Street indexes staged a comeback as investors looked for

bargains after Friday's selloff when the heavyweight technology

sector put pressure on the entire market. The sector suffered

its largest daily decline since April 2025 after a hot May jobs

report fueled fears the U.S. Federal Reserve would need to raise

interest rates.

"The profit takers did their work on Friday," said Bruce Zaro,

managing director at Granite Wealth Management in Plymouth,

Massachusetts. "New buyers have come in and said, that was

overdone."

Aside from worrying about geopolitics and interest rates, Zaro

said that investors were also preparing for this week's hotly

anticipated SpaceX IPO and reacting to tweaks to

membership of the S&P 500. The index is adding Marvell

Technology ( MRVL ), helping to boost the chip sector, which

sold off sharply on Friday.

The S&P 500 technology index was up 2.3% on Monday after

tumbling 5.8% on Friday.

On Wall Street at 10:53 a.m. ET (1453 GMT), the Dow Jones

Industrial Average rose 153.76 points, or 0.30%, to

51,020.54, the S&P 500 rose 71.63 points, or 0.97%, to

7,455.37 and the Nasdaq Composite rose 414.23 points, or

1.61%, to 26,123.66.

MSCI's gauge of stocks across the globe

rose 0.70 points, or 0.06%, to 1,106.50 while the pan-European

STOXX 600 index fell 0.06%.

The decline in equity markets was stark earlier in Asia, with

South Korea's chip-heavy KOSPI, the world's

best-performing market this year, leading losses with an 8.3%

slide that has the benchmark down over 16% from last week's

record high. Japan's Nikkei fell almost 4%, with market

darlings across the computer-chip production supply chain

falling furthest, while Taiwan's benchmark sank 3.5%.

In currencies, the dollar retreated from its highest level in

nearly two months as the halt of Iranian and Israeli attacks

reduced safe haven demand.

The dollar index, which measures the greenback against a

basket of currencies including the yen and the euro, fell 0.12%

to 99.96, with the euro up 0.16% at $1.1538.

Against the Japanese yen, the dollar weakened 0.12%

to 160.09.

In cryptocurrencies, bitcoin gained 3.27% to $63,891.25.

Last week it notched its heaviest weekly drop since the collapse

of crypto exchange FTX in late 2022, falling about 16%.

In government bonds, U.S. Treasury yields were mixed with

two-year yields pulling back from a 15-month high reached on

Friday after the stronger-than-expected May jobs report.

The yield on benchmark U.S. 10-year notes rose 1.6

basis points to 4.552%, from 4.536% late on Friday, while the

30-year bond yield rose 2 basis points to 5.019%.

The 2-year note yield, which typically moves in step

with interest rate expectations for the Federal Reserve, fell

0.2 basis points to 4.16%, from 4.162% late on Friday.

In precious metals, gold steadied as hopes for a potential

Israel-Iran ceasefire helped it bounce from session lows, but

worries about a Fed rate hike limited the upside.

Spot gold was last up slightly at $4,331.38 an

ounce.