US Stocks Rebound on Lower Oil Prices

The Dow Jones Index is gaining 996 points or 2.19 percent on Monday. Leading the gains are Caterpillar (3.96%), 3M (3.70%) and Home Depot (3.66%).

US equities were firmly higher on Monday after President Trump announced a five-day suspension of strikes on Iranian energy infrastructure following constructive talks with Iran. The S&P 500, Dow, and Nasdaq 100 were around 2.5% higher. The news of talks were denied by Tehran, but signs that the administration aimed to lower energy prices limited concerns of stagflation. Consequently, stocks were higher across most sectors at the start of the week, with tech giants receiving some respite from the mixed guidance on AI demand by chip companies last week. Tesla gained 3% while Nvidia, Amazon, and Apple roe over 2%. Meanwhile, banks, insurers, and asset managers were higher with support from a pullback in yields as markets continued to digest risks from redemption requests on private credit funds.

Futures tracking US equities rose on Monday after President Trump announced the US will suspend attacks on Iranian energy infrastructure for five days. Contracts for the S&P 500, Dow, and Nasdaq 100 were over 2% higher after having flirted with six-month lows last session before paring gains. The President cited constructive talks with Tehran for the decision, although Iran denied any talks having happened. Still, the move reflected a will to de-escalate the conflict by the administration as soaring energy prices risked stagflation and triggered a surge in Treasury yields. Equity futures gained across all sectors on hopes that inflation may not surge to the magnitude that was feared. Large tech companies received some respite from the mixed guidance on AI demand by chip companies last week. Also, lenders, insurers, and asset managers were higher with support from lower rates.