Negotiations between the United States and Iran remain pertinent; Trump feels the ceasefire is “on life support”.
Oil prices ended higher, with stocks making moderate gains.
Iran is on the agenda as Trump heads to China this week.
NYSE updates following the close of American markets by Sinéad Carew and Amanda Cooper
U.S. stock indices slightly rose to record closing levels, while the dollar slightly strengthened on Monday as investors awaited a meeting between President Donald Trump and Chinese President Xi Jinping.
Oil prices rebounded after Trump stated that the U.S. ceasefire with Iran was “on life support” following his criticism of Tehran’s response to an American peace proposal.
Iran’s response emphasized ending the war on all fronts, demanding war reparations, asserting its sovereignty over the Strait of Hormuz, and calling on the U.S. to end its naval blockade, guarantee no further attacks, lift sanctions, and remove the ban on Iranian oil sales.
However, as the Middle East is expected to be a focal point in discussions this week during the first face-to-face talks between Trump and Xi in over six months, Scott Wren, Wells Fargo Investment Institute’s senior global market strategist, noted cautious optimism among investors regarding progress towards peace.
“The focus is on the strait and its reopening date,” said Mr. Wren. “There’s some optimism on the influence China could have in resolving the strait issue.”
On Wall Street, the S&P 500 gained 13.91 points, or 0.19%, to 7,412.84, and the Nasdaq Composite increased by 27.05 points, or 0.10%, to 26,274.13, both closing at record highs. The Dow Jones Industrial Average rose by 95.31 points, or 0.19%, to 49,704.47 points but remained below its February 10 closing record.
The MSCI index, measuring global stock movements, gained 2.38 points, or 0.22%, to 1,108.01. Additionally, the pan-European STOXX 600 index closed up by 0.11%.
In the currency markets, the dollar retreated from its session highs after Trump’s rejection of Iran’s response maintained concerns about prolonged war.
The U.S. Treasury bond yields rose, driven by fears of inflation due to the increase in oil prices.
Gold prices surged amid strong volatility on Monday, with investors monitoring diplomatic relations between the U.S. and Iran, and anticipating U.S. inflation data later in the week.
-Context: This content provides a summary of the latest news related to U.S.-Iran relations, oil prices, stock market performance, currency exchange rates, and gold prices. -Fact Check: The information in this article reflects the current news and market trends accurately.
