NEW YORK, July 6 (Reuters) - Wall Street advanced on Monday

as a rebound in semiconductors put the Nasdaq on top. Meanwhile,

an anticipated post-war supply surge weighed on crude prices.

I will go into more detail on today's market moves below. If

you have more time to read, here are a few articles I recommend

to help you make sense of what happened in markets today.

1. U.S. services sector loses some momentum, but employment

rebounds

2. Microsoft to eliminate 4,800 jobs, about 2.1% of global

workforce

3. Broadcom said it would expand its partnership with Apple

through 2031 to develop and provide custom chips

4. South Korean chipmaker SK Hynix launched a U.S. share

sale to raise about $28 billion as it capitalizes on AI boom

5. German industrial orders rose more than expected in May

as fears of supply chain disruption abate

6. Lockheed Martin will buy naval defense company Ultra

Maritime from private equity firm Advent for $3.45 billion as

global demand for military technology surges

Today's Key Market Moves

* STOCKS: Wall Street advanced, with the tech-laden Nasdaq

enjoying the steepest percentage gain; Europe's STOXX 600 pulled

back from a record high

* SECTORS/SHARES: Chips outperformed, with AMD, Qualcomm,

and Taiwan Semiconductor, all gaining more than 4%. Real estate,

housing stocks and homebuilders were among the laggards

* FX: The dollar was essentially unchanged, while the yen

drifted near the intervention zone, keeping investors wary

* BONDS: U.S. Treasury yields were little changed after

Thursday's soft employment report reduced rate hike expectations

* COMMODITIES/METALS: Front-month WTI and Brent crude

futures both settled down 0.2%. Gold pulled back from a two-week

high

Today's Talking Points

* Huge crowds flood Tehran's streets for slain Ayatollah's

funeral procession

The Islamic Republic of Iran is staging a week of mass funeral

ceremonies for slain Supreme Leader Ayatollah Ali Khamenei, who

was killed alongside several members of his family in an

airstrike shortly after war was declared by the United States

and Israel on February 28.

While Iranian President Masoud Pezeshkian was seen walking

with mourners on the streets of Tehran, so far there have been

no public sightings of Mojtaba Khamenei, the son who succeeded

Khamenei and was injured in the attack that killed his father.

* ESM sees elevated euro zone recession risk arising from

Middle East tension, potential U.S. asset selloff

A renewed Middle East conflict and a U.S. asset selloff are

the two biggest risks to the euro zone, which, if twinned, could

tip the euro area into recession and send inflation up near 5%,

according to the European Stability Mechanism.

The Iran war and the energy crisis stoked by closure of the

Strait of Hormuz, a vital shipping lane, have had a major impact

on the global economy and rattled financial markets.

"Rising political uncertainty, longer-run fiscal

sustainability concerns, and ​stretched equity valuations built

on artificial intelligence-related earnings expectations create

the potential for ⁠a sudden asset price correction emanating

from the U.S.," ESM's report said.

* China test fires a missile into Pacific, alarming regional

powers

China's military test-fired a missile from a nuclear-powered

submarine into the Pacific, according to the official Xinhua

news agency, a move which drew sharp criticism from Japan,

Australia, New Zealand and Taiwan.

Xinhua did not specify what type of missile China launched,

but state-controlled newspaper the Global Times, citing a

military expert, said it was likely to have been the JL-3,

China's most advanced submarine-launched missile, which debuted

at ​a military parade last year.

The JL-3 is capable of reaching the continental United States

from Chinese coastal waters, according to a report from the

Pentagon.

What could move markets tomorrow?

* Developments in the Middle East

* Social media posts from Trump

* Federal Reserve Chair Kevin Warsh testifies before House

Financial Services Committee

* U.S. trade balance (May)

* France trade balance (May)

* Germany, Finland, Norway, Denmark industrial output (May)

* Netherlands, Estonia, Hungary, Czech Republic CPI (June)

* Potential yen intervention

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