Wall Street kicked off the week with a strong rally, as investors took comfort in signs that the Israel–Iran conflict may not spiral further. All three major indices closed higher. The Dow gained 317 points, or 0.75%, finishing at 42,515. The S&P 500 added nearly 1% to close at 6,033, while the tech-heavy Nasdaq surged 1.52%, ending the session at 19,701.
The rebound followed heavy losses on Friday, when fears of a regional war triggered a sharp sell-off across global markets. But sentiment shifted after reports that Iran had asked regional powers to press U.S. President Donald Trump for a ceasefire deal—one that could also reopen the door to nuclear negotiations.
Oil and gold pull back as volatility eases
Oil prices dropped as geopolitical risk moderated. West Texas Intermediate crude fell more than 1% to US$71.77 a barrel, reversing sharp overnight gains. The recent attacks on energy facilities had pushed prices as high as US$77, but Monday’s more measured tone helped cool the rally.
Gold, which had spiked last week as a safe-haven asset, also pulled back. It slipped to around US$3,390 an ounce—about US$110 off its April peak. Despite the dip, the metal remains up roughly 30% this year, buoyed by strong central bank buying and continued diversification away from the U.S. dollar.
Tech stocks recover; crypto rebounds
Monday’s risk-on mood helped all “Magnificent Seven” tech stocks finish higher. Meta gained nearly 3% after announcing it will begin showing ads on WhatsApp. Tesla and Palantir rose more than 1% each, riding the wave of broader tech optimism.
Bitcoin also staged a recovery, rising 3.8% to US$108,681. Analysts say the crypto market has shown resilience, with ETF inflows remaining strong despite recent volatility.
Eyes on the Fed and regional central banks
With markets steadying, investor attention now turns to the U.S. Federal Reserve. The central bank is expected to hold interest rates steady on Wednesday, but traders will be watching closely for updates to the dot plot and remarks from Chair Jerome Powell.
Australian shares are set to open higher following Wall Street’s lead. Meanwhile, the Bank of Japan meets Tuesday, with no rate changes expected. New Zealand will also release updated inflation data.
Futures
The SPI futures are pointing to a 6 point gain.
