NEW YORK Ƶ Calm returned to Wall Street on Monday, and U.S. stocks rose, while oil prices gave back some of their initial spurts following at the end of last week.
The S&P 500 climbed 0.9% to reclaim most of its . The Dow Jones Industrial Average rose 317 points, or 0.8%, and the Nasdaq composite gained 1.5%. They joined a worldwide climb for stock prices, stretching from Ƶia to Europe.
Israel and Iran are , and a fear remains that a wider war could constrict the flow of IranƵs oil to its customers. That in turn could raise gasoline prices worldwide and keep them high.
But past conflicts in the region have seen spikes for crude prices last only briefly. TheyƵve receded after the fighting showed that it would not disrupt the flow of oil, either IranƵs or other countriesƵ through the narrow Strait of Hormuz off IranƵs coast.
Hopes that the fighting could remain similarly contained this time around helped send oil prices back toward $71 per barrel on Monday.
IranƵs foreign minister, Abbas Araghchi, appeared to make a veiled outreach for the U.S. to step in and negotiate an end to hostilities between Israel and Iran, saying in a post on X that a phone call from Washington to IsraelƵs leader Ƶmay pave the way for a return to diplomacy.Ƶ
A barrel of benchmark U.S. oil fell 1.7% to $71.77, while Brent crude, the international standard, dropped 1.3% to $73.23 per barrel. They had both jumped roughly 7% on Friday after the initial attacks.
In another signal of calming fear in financial markets, the price of gold also gave back some of its knee-jerk climb from Friday, when investors were looking for . An ounce of gold fell 1% to $3,417.30.
Wall Street has plenty of other concerns in addition to the fighting in Iran and Israel. Key among them are , which still threaten to slow the economy and raise inflation if the U.S. government doesnƵt win trade deals with other countries to reduce TrumpƵs taxes on imports.
The United States is meeting with six of the worldƵs largest economies in Canada for a , with the specter of tariffs looming over the talks.
Later this week, the Federal Reserve is set to discuss whether to lower or raise interest rates, with the decision due on Wednesday. The nearly unanimous expectation among traders and economists is that the Fed will make no move.
The Federal Reserve has been , and itƵs been on hold this year after cutting at the end of last year, because itƵs waiting to see how much TrumpƵs tariffs will hurt the economy and raise inflation. has remained recently, and itƵs near the FedƵs target of 2%.
More important for financial markets on Wednesday will likely be the latest set of forecasts that Fed officials will publish for where they see the economy and interest rates heading in upcoming years. Economists at Bank of America say it could show a forecast for just one cut to interest rates this year, along with three more in 2026.
In the bond market, the yield on the 10-year Treasury rose to 4.45% from 4.41% late Friday
On Wall Street, Sage Therapeutics jumped 35.4% for one of the marketƵs biggest gains after Supernus Pharmaceuticals said it would buy the biopharmaceutical company in a deal worth up to $795 million, or $12 per share, if certain conditions are met.
U.S. Steel rose 5.1% after Trump signed an for an investment in the company by JapanƵs Nippon Steel. Trump would have over the operations of U.S. Steel under the terms of the deal.
They helped offset drops for defense contractors, which gave back some of their jumps from Friday. Lockheed Martin fell 4%, and Northrop Grumman sank 3.7%.
All told, the S&P 500 rose 56.14 points to 6,033.11. The Dow Jones Industrial Average added 317.30 to 42,515.09, and the Nasdaq composite gained 294.39 to 19,701.21.
In stock markets abroad, indexes rose across most of Europe and Ƶia.
Stocks climbed 0.7% in Hong Kong and 0.3% in Shanghai after data showed stronger Chinese consumer spending for May but slower growth in factory activity and investment.
South KoreaƵs Kospi climbed 1.8%, and JapanƵs Nikkei 225 rallied 1.3% for two of the worldƵs bigger gains.
AP Writer Jiang Junzhe contributed.
