Oil Trades in Red, but Stocks Climb

Stocks were higher on Monday even after the United States entered Israel’s war against Iran over the weekend by striking three nuclear sites. Oil prices were also lower after a brief spike overnight.

The Dow Jones Industrials saw gains subside, but was still ahead 21.24 points midday Monday at 42,228.06.

The S&P 500 index recovered 13.8 points to 5,981.64.

The NASDAQ Composite was stronger by 59.95 points to 19,507.36.

Investors also weighed comments from Federal Reserve Governor Michelle Bowman that said she would be in favor of the central bank cutting interest rates at the July policy meeting. Her comments follow similar sentiment from peer Governor Christopher Waller on Friday.

Novo Nordisk shares are under pressure after updates at the American Diabetes Association conference this weekend left the impression that Eli Lilly has an edge in obesity treatment. Also, Novo Nordisk said it ended a venture with telehealth platform Hims & Hers to sell its weight loss drug.

Novo Nordisk’s shares tumbled 6%, while Hims & Hers dove 31%. Eli Lilly shares were slightly positive.

Oil prices had already spiked in recent weeks following the increased tensions in the Middle East. U.S. crude oil futures on Sunday night reached highs not seen since January before paring those gains. slipped more than 1% on Monday, after Trump said in a Truth Social post that “everyone” should keep oil prices low, and doing otherwise “play into the hands of the enemy.”

Prices for the 10-year Treasury were much higher, weighing yields to 4.30% from Friday’s 4.38%. Treasury prices and yields move in opposite directions.

Oil prices demurred 12 cents to $73.72 U.S. a barrel.

Gold prices gained $18.70 to $3,404.40 U.S. an ounce.