Dow, S&P 500, Nasdaq Rise; Oil Falls Amid Iran and Israel Strikes; Tesla, Sarepta and More Movers
The stock market bounced back on Monday from its slide in the wake of Israel’s strikes against Iran, as Wall Street began to look through the conflict and ahead to this week’s Federal Open Market Committee meeting.
The Dow Jones Industrial Average rose 317 points, or 0.8%. The S&P 500 was up 0.9%. The Nasdaq Composite was up 1.5%.
Stocks picked up some steam early in the session after The Wall Street Journal reported Iran has been signaling it wants to de-escalate the conflict with Israel and resume negotiations with the U.S. over its nuclear programs. At one point during the morning, the market had fully recovered from Friday’s slide, which signals Wall Street is growing less concerned about the Israel-Iran conflict.
Brent crude futures fell about 1.3% to $73.23 after spiking on Friday. The S&P 500 energy sector also lagged behind the broader market.
“Oil prices are always volatile and the Fed usually looks past them,” writes Callie Cox, chief market strategist at Ritholtz Wealth Management. “BUT when people are so on edge about prices (thank you, tariffs), and inflation expectations are already quite high, any inflation catalyst raises the stakes for an overall inflation freakout/mass price increases.”
The Fed’s two-day June meeting begins on Tuesday. Though the central bank is widely expected to keep interest rates steady on Wednesday, Chairman Jerome Powell’s press conference will be closely monitored by traders for any commentary on how central bankers view the latest inflation data.
