US sharemarkets rebounded on Monday after comments from President Donald Trump suggesting the conflict involving Iran may be nearing its conclusion helped stabilise investor sentiment. The S&P 500 rose 0.83% to close at 6,795.99, while the Dow Jones Industrial Average gained 239 points, or 0.5%, to 47,740.80. The Nasdaq Composite led the gains, climbing 1.38% to 22,695.95.
The rally marked a sharp turnaround from earlier losses. At its lowest point during the session, the Dow had fallen nearly 900 points while both the S&P 500 and Nasdaq dropped about 1.5%.
Oil volatility and tech gains drive recovery
Oil prices were highly volatile following the latest developments in the Middle East. West Texas Intermediate crude briefly surged above US$119 a barrel in overnight trading, its highest level since 2022, before retreating to around US$81 later in the session after Trump said the war could be “very complete”.
The pullback in energy prices helped ease concerns about inflation and economic disruption. Semiconductor stocks supported the broader market recovery, with Broadcom rising more than 4%, while Micron Technology and Advanced Micro Devices each advanced about 5%. Nvidia also gained more than 2%.
Finance ministers from the Group of Seven nations met on Monday to discuss the potential release of strategic oil reserves, though no decision was reached. Energy ministers from the same group are scheduled to meet virtually on Tuesday to continue discussions on supporting global energy supply.
Australian market outlook
Australian shares are set to rebound strongly, following the recovery on Wall Street and easing concerns around energy markets. ASX 200 futures were up 184 points, or 2.2%, to 8,751.
Locally, investors will focus on economic data releases later this morning. Westpac will publish its March consumer confidence report at 10.30am AEDT, followed by NAB’s February business confidence and conditions surveys at 11.30am.
