Market Shifts: Stocks Rise, Oil Prices Dip

The world of finance saw a shift on Monday. Stocks in the U. S. climbed, and oil prices dropped. This happened after Israel's recent actions against Iran. The S&P 500 went up by 0. 9%. The Dow Jones Industrial Average rose by 317 points, or 0. 8%. The Nasdaq composite gained 1. 5%. This rise was part of a global trend, with stocks climbing in Asia and Europe as well. The conflict between Israel and Iran is ongoing. There is a worry that it could disrupt Iran's oil supply. This could lead to higher gasoline prices worldwide. However, past conflicts in the region have shown that oil price spikes are usually short-lived. Prices drop once it's clear that oil flow won't be disrupted. This includes oil from Iran and other countries passing through the Strait of Hormuz. On Monday, oil prices fell back towards $71 per barrel. This was due to hopes that the fighting might stay contained. Iran's foreign minister hinted at a possible U. S. role in ending the hostilities. He suggested a phone call from Washington to Israel's leader could help. A barrel of U. S. oil fell by 1. 7% to $71. 77. Brent crude, the international standard, dropped by 1. 3% to $73. 23 per barrel. Both had jumped by about 7% on Friday after the initial attacks. Gold prices also fell, showing a decrease in market fear. An ounce of gold dropped by 1% to $3, 417. 30. Wall Street has other worries besides the Israel-Iran conflict. These include President Donald Trump's tariffs, which could slow the economy and raise inflation. The U. S. is meeting with six of the world's largest economies in Canada. The talks are overshadowed by the threat of tariffs. Later this week, the Federal Reserve will discuss interest rates. The decision is due on Wednesday. Most traders and economists expect no change. The Fed has been cautious about lowering rates. It's waiting to see how Trump's tariffs will affect the economy and inflation. Inflation has been relatively low, near the Fed's target of 2%. The bond market saw the yield on the 10-year Treasury rise to 4. 45% from 4. 41% late Friday. On Wall Street, Sage Therapeutics had one of the market's biggest gains, jumping 35. 4%. This was after Supernus Pharmaceuticals said it would buy the company. U. S. Steel rose 5. 1% after Trump signed an executive order allowing an investment by Japan's Nippon Steel. These gains offset drops for defense contractors. Lockheed Martin fell 4%, and Northrop Grumman sank 3. 7%. In the end, the S&P 500 rose to 6, 033. 11. The Dow Jones Industrial Average added 317. 30 to 42, 515. 09. The Nasdaq composite gained 294. 39 to 19, 701. 21. Stocks also climbed in Europe and Asia. Hong Kong saw a 0. 7% rise, and Shanghai had a 0. 3% increase. South Korea's Kospi climbed 1. 8%, and Japan's Nikkei 225 rallied 1. 3%.