Stocks Hike on Hope for Mideast Peace

Stocks rebounded on Monday as investors were optimistic that the conflict between Israel and Iran may remain contained. The spike in oil prices due to the escalating conflict also eased.

The Dow Jones Industrials zoomed 317.30 points to 42,515.09.

The S&P 500 index regrouped 56.14 points to 6,033.11.

The NASDAQ Composite climbed 294.39 points, or 1.5%, to 19,701.21.

All “Magnificent Seven” stocks were higher Monday, as the pullback in oil prices caused investors to take on more risk again. Tesla was up more than 1%, and Meta Platforms climbed almost 3%, bolstered by news that ads are coming to WhatsApp.

Meanwhile, Palantir, which is viewed as a beneficiary of increasing global conflict, moved nearly 3% higher.

Investors also digested weaker-than-expected manufacturing survey data Monday morning, which came ahead of the Federal Reserve’s interest rate decision on Wednesday.

Traders have been closely watching the Middle East after Israel’s strike on Iran Friday. Iran launched missiles in retaliation, increasing the severity of conflict in the region.

However, there was some optimism on Monday that the situation wouldn’t escalate after a Wall Street Journal report said that Iran has signaled through intermediaries that it would be open to restarting negotiations as long as U.S. doesn’t join Israel in the attacks. The report also said Iran has messaged to Israel that both sides should keep attacks contained.

Prices for the 10-year Treasury were lower, pushing yields up to 4.45% from Friday’s 4.41%. Treasury prices and yields move in opposite directions.

Oil prices slumped $1.59 to $71.39 U.S. a barrel.

Gold prices slid $50.20 to $3,402.60 U.S. an ounce.