US stocks mounted a significant recovery on Monday, erasing steep losses and closing firmly in positive territory after the president suggested the conflict with Iran could be nearing its end. The sudden shift in market sentiment sent oil prices tumbling after they had surged to multi-year highs.
The tech-heavy Nasdaq Composite led the charge, rising more than 1.3%. The Dow Jones Industrial Average jumped approximately 240 points, a gain of 0.5%, reversing a loss of more than 800 points earlier in the session. The benchmark S&P 500 also gained ground, closing up 0.8%.
The market’s dramatic turnaround began in afternoon trading following comments from the president. He indicated that the United States was “very far” ahead of its initial four-to-five week timeline for the conflict, suggesting it could be over soon. “I think the war is very complete, pretty much. They have no navy, no communications, they’ve got no Air Force,” he told a reporter.
Meanwhile, oil prices plummeted after spiking overnight. Crude futures had briefly topped $100 a barrel, raising concerns about global energy supplies and prompting ministers from the G7 economies to discuss tapping strategic petroleum reserves. The president also mentioned having “a plan” to curb the surging costs.
Investors are now looking ahead to key economic reports due later in the week, including the Consumer Price Index and the Personal Consumption Expenditures index, though these readings will not yet reflect the recent volatility in oil prices. The corporate earnings season also continues, with several major technology companies scheduled to report.
In a related development, Bitcoin showed resilience, climbing back to the $69,000 level as some analysts noted its relative stability amid the geopolitical turmoil.
