Dow, S&P 500, Nasdaq rise on relief over Israel, Iran
- Dow Jones and Nasdaq recover after geopolitical tensions
- Optimism returns to markets with possible détente between Israel and Iran
- Oil falls as investors regain appetite for risk
U.S. stock markets began Monday's session with a strong gain, reflecting investors' relief from geopolitical tensions between Israel and Iran. The recovery comes after the release of information indicating a possible willingness by Tehran to reduce the confrontation.
The Dow Jones Industrial Average rose about 1%, while the S&P 500 also posted a 1% gain. The Nasdaq Composite rose 1,3%, driven mainly by technology stocks, which are traditionally more sensitive to market sentiment.
Monday's advance contrasts with last Friday's tumble, when the Dow lost more than 700 points amid a generalized risk aversion movement. The change in direction in the markets occurred after the Wall Street Journal reported that the Iranian government would be willing to resume negotiations on its nuclear program, signaling a possible path to reducing tensions.
The period of instability in the Middle East has hit markets at a delicate time, as investors also face uncertainty related to US tariff policy. The significant drop in stocks last week pushed the main indexes into negative territory in the accumulated weekly.
Now, with signs of moderation from Iran, investors are once again seeking risk assets. President Donald Trump said on Sunday that there was a “good chance” of a peace deal, although he stressed that hostilities may need to “be resolved first.” He said: “Sometimes they have to fight, but we’ll see what happens.”
While stock indexes showed recovery, oil prices fell. Futures contracts for the commodity lost strength amid expectations that the conflict will not escalate beyond the region. The relief in oil prices also contributed to the improvement in global investor sentiment.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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