The S&P 500 Index closed up 1.15% on Monday, while the Dow Jones Industrial Average rose by 1.38% and the Nasdaq 100 Index increased by 1.22%. This market rally followed President Trump’s announcement that strikes against Iranian energy infrastructure would be postponed for five days, pending discussions to end hostilities in the Middle East. Meanwhile, global crude oil prices plummeted by over 10%, with the International Energy Agency indicating that ongoing conflicts could disrupt 7.5% of global oil supply.
In bond markets, the 10-year U.S. Treasury yield fell from an eight-month high of 4.44% to 4.33%. This occurred in tandem with declining yields in Europe, where the 10-year German Bund yield dropped from a 14.75-year high of 3.08%. While optimism surged in U.S. stock indices, overseas markets displayed mixed results, with the Euro Stoxx 50 closing up 1.33% and China’s Shanghai Composite dropping 3.63%.
Various sectors saw significant gains, notably the airline and cruise line industries, which benefited from lower crude oil prices, with Norwegian Cruise Line rising over 6%. The technology sector also performed well, with major companies like Tesla and Amazon increasing by over 3% and 2%, respectively.
