FX.co ★ US Stocks Start Week Higher

U.S. equities rallied on Monday as a sharp easing of Middle East tensions drove a broad shift back into risk assets. The S&P 500 advanced 1.2%, the Nasdaq Composite gained 1.5%, and the Dow Jones Industrial Average added 1.2%.

President Trump announced a five-day suspension of military strikes on Iranian infrastructure, signaling a pivot toward diplomacy that eased immediate fears of a regional energy conflict. After weeks dominated by stagflation concerns, the announcement triggered a steep decline in global crude benchmarks, delivering a strong tailwind to airlines—United Airlines rose 4.5%—and reducing input costs for industrial producers.

Technology bellwethers also benefited, with Nvidia up 1.6% and Apple gaining 1.5%. Cyclical sectors outperformed as well: industrial and financial stocks were buoyant, with Caterpillar climbing 3.1% and Morgan Stanley advancing 1.9%.

Although Iranian state media denied any direct communication with Washington, investors focused on the administration’s evident intent to stabilize global trade routes, fueling the risk-on move across markets.