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The S&P 500 rose on Monday as investors hoped that a deal would eventually be struck between the U.S. and Iran.
The Dow Jones Industrials surged 301.68 points to 48,218.75.
The broader index 69.35 points, or 1%, to 6,886..24
The NASDAQ popped 280.84 points, or 1.2%, to 23,183.74.
While technology names offered a boost to the broader market, with software stocks such as Oracle – rising 11% -- and Palantir Technologies rising 3%. Goldman Sachs was a sore spot in the session. That stock was down 3% despite the bank’s strong overall earnings after it recorded disappointing trading results in its fixed income unit.
Stocks took a leg higher after President Donald Trump said, “We’ve been called by the other side.” He added, “They’d like to make a deal very badly.”
This comes after Trump announced a blockade of the Strait of Hormuz, with peace talks between the U.S. and Iran over the weekend ending without a deal.
The blockade of all maritime traffic in and out of Iran’s ports went into effect Monday. U.S. Central Command said the U.S. will not block vessels using the strait to get to non-Iranian ports.
The breakdown of negotiations in Islamabad reignited worries that the Iran war will last longer than feared, leading to higher oil prices that will continue to strain economies worldwide. West Texas Intermediate crude oil advanced 2.6% to settle at $99.08 per barrel. International Brent popped 4.37% to settle at $99.36 a barrel.
Vice President J.D. Vance left Islamabad without a deal with his Iranian counterparts, citing their unwillingness to stop the pursuit of nuclear weapons.
But both sides appear farther apart than just that issue, with Iran demanding control of the Strait of Hormuz, war reparations and the release of frozen assets.
Mediators from Pakistan, Egypt and Turkey will continue talks with the two nations over the coming days, Axios reported, citing a regional source and a U.S. official.
Prices for the 10-year Treasury sprang higher, lowering yields to 4.29% from last week’s 4.32%. Treasury prices and yields move in opposite directions.
Oil prices leaped $1.33 to $97.94 U.S. a barrel.
Gold prices dulled $24.00 to $4,763.40 U.S. an ounce.
