S&P 500 Rallies on Hopes of Iran-Israel Ceasefire, Renewed Nuclear Talks
U.S. stocks rose on Monday amid optimism that the conflict between Iran and Israel could deescalate, following reports that Tehran is pushing for a ceasefire and is open to resuming nuclear negotiations.
As of 3:19 p.m. ET (19:19 GMT), the Dow Jones Industrial Average was up 267 points (0.6%), the S&P 500 advanced 0.8%, and the NASDAQ Composite gained 1.4%.
Iran Calls for Ceasefire; Oil Retreats
Reports indicate Iran has reached out through intermediaries—Qatar, Saudi Arabia, and Oman—asking them to urge President Donald Trump to influence Israel toward an immediate ceasefire.
“If President Trump is sincere about diplomacy and truly wants to stop the war, the next steps are critical,” Iranian Foreign Minister Abbas Araqchi said on platform X.
The prospect of a diplomatic breakthrough eased concerns about prolonged conflict, leading to a decline in oil prices and lifting market sentiment as investors moved back into riskier assets.
Investors Await Fed Policy Signals
The Federal Reserve begins its two-day policy meeting on Tuesday, with markets expecting interest rates to remain steady at around 4.5%. Attention is centered on whether Fed officials will hint at potential rate cuts, particularly in light of recent data showing cooling inflation and slowing economic momentum.
Although the Fed has held rates steady for most of the year, softening inflation and a weaker labor market have led to speculation that a more dovish shift could be on the horizon. President Trump has also increased pressure on the central bank to lower rates.
The Fed reduced rates by a full percentage point over the course of 2024 but projected a more cautious approach for 2025 due to lingering uncertainties—many stemming from Trump’s tariffs and their economic impact.
Investors are also watching for Monday’s upcoming U.S. manufacturing survey results for additional economic signals.
G7 Summit Looms Amid Trade Tensions
Leaders of the Group of Seven nations are gathering in Canada this week, but the summit could prove contentious as President Trump has imposed steep tariffs on several allied nations.
Canadian Prime Minister Mark Carney emphasized the summit’s focus on global peace and stability but warned that Canada may retaliate if the U.S. does not lift tariffs on steel and aluminum.
Corporate Movers: Roku Surges on Amazon Deal
In corporate developments:
- Roku (NASDAQ: ROKU) shares jumped following news of an exclusive partnership with Amazon Ads (NASDAQ: AMZN), forming what they claim is the largest authenticated Connected TV (CTV) audience in the U.S.
- U.S. Steel (NYSE: X) surged after President Trump approved its partnership with Nippon Steel of Japan.
- Sarepta Therapeutics (NASDAQ: SRPT) slumped after disclosing a second patient death from acute liver failure linked to its gene therapy for a rare muscular disorder.
