Wall Street Rebounds From US-Iran War Losses, S&P 500 Turns Positive For 2026 — SanDisk, Lumentum And These Stocks Are Driving Gains In SPY ETF

The S&P 500 Index staged a strong comeback, turning positive for 2026 on Monday and recovering all losses from the U.S.-Iran war.

After weeks of volatility, investors are looking for some stability in the stock market. Despite elevated tensions in the Middle East, Wall Street remains hopeful that the conflict will not derail the broader economy, with sentiment buoyed by expectations of a potential diplomatic resolution, according to a report from PBS News.

SPDR S&P 500 ETF Trust (NYSE:SPY), the oldest ETF and tracker of the S&P 500 Index, mirrored the rebound. With $685.5 billion in assets under management, the fund trades an average of more than 92 million shares daily and has an expense ratio of 0.09%.

While most stocks in the fund’s portfolio have gained sharply, the following five have led the gains.

SanDisk Corp. (NASDAQ:SNDK)

SanDisk stock has surged on strong NAND flash prices and booming demand from AI data centers. Its inclusion in Nasdaq 100 and Wall Street's bullish sentiment boosted investor confidence in the company's future growth.

Benzinga Edge Stock Rankings indicate that SNDK maintains strong trends in the short, medium and long terms, with a strong Momentum score in 100th percentile.

Lumentum Holdings Inc. (NASDAQ:LITE)

Lumentum Holdings shares were on a tear, driven primarily by booming demand for its optical and photonic components used in AI data centers. The company benefited from a major investment and supply agreement with Nvidia Corp. (NASDAQ:NVDA), which boosted investor confidence and provided strong long-term revenue visibility.

Robust earnings growth, expanding margins, and inclusion in the S&P 500 further fueled the rally, as institutional investors increased exposure to companies tied to the AI infrastructure boom.

Benzinga Edge Stock Rankings indicate that LITE maintains strong trends in the short, medium and long terms, with a Momentum score in the 100th percentile.

Ciena Corporation (NYSE:CIEN)

Ciena Corp stock staged a powerful rally in 2026, driven by a combination of AI-driven demand, strong earnings, and structural industry tailwinds. The stock was added to the S&P 500 Index in February, increasing institutional demand.

Western Digital Corporation (NASDAQ:WDC)

The biggest driver behind Western Digital's rally is the explosion in AI and cloud infrastructure demand. CNBC's Jim Cramer noted that memory companies like Western Digital are sitting on a "gold mine." He cited the unprecedented data demands of artificial intelligence as a primary driver for storage.

Citigroup raised the target price for WDC to $405 from $335, citing continued solid supply and demand for storage, improving pricing dynamics, and AI demand accelerating the generation of unstructured data.

Benzinga Edge Stock Rankings indicate that WDC has a Momentum score in the 99th percentile. It maintains a strong price trend in the short, medium and long term.

Corning Incorporated (NYSE:GLW)

Corning is seen as a big beneficiary of artificial intelligence-driven optical networking demand. Recent reports show the stock has been hitting record highs specifically due to investor optimism around AI-driven optical networking growth.

Benzinga Edge Stock Rankings indicate that the GLW has a Momentum in the 98th percentile and checks out on all Price Trends.

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