NEW YORK (AP) — Monday on Wall Street felt like that calm after a storm. U.S. stocks bounced back with a little swagger, while oil prices eased from their weekend spurt, prompted by Israel’s strike on Iranian targets. You gotta love how the S&P 500 added 0.9%, almost wiping out Friday’s dip, while the Dow climbed 317 points (0.8%), and the Nasdaq strutted up 1.5%. It was a global party, as stock prices soared from Asia to Europe.
So, you’re probably wondering about those oil prices. They’ve been like a drama queen since last week. They spiked after the attacks but began to mellow out as hopes surfaced that the skirmish might not mess with oil flow through the Strait of Hormuz. U.S. oil dropped to $71.77 a barrel, sliding 1.7%, while Brent crude dipped 1.3% to $73.23. Talk about déjà vu from past Middle East conflicts. They flare up, oil prices jump, but then peace sneaks in temporarily.
[AP AUDIO: Wall Street recovers from Friday’s shock as US stocks rally and oil prices ease](#)
Wall Street’s snapping back like a rubber band, and oil prices are getting back in line. Catch more on this from our guy, Seth Sutel.
Across the ocean, plenty of action too. Asian markets rallied, with South Korea’s Kospi spiraling 1.8% higher, and Japan’s Nikkei 225 not far behind at 1.3%. Even European indexes caught the wave. Here at home, the yield on the 10-year Treasury rose a tad to 4.45%, as everyone watches for the Fed’s next move.
Now, about Iran’s diplomatic hint. Their foreign minister, Abbas Araghchi, threw a little bait toward Washington, suggesting diplomacy could be back if Uncle Sam phones Israel. Comic relief, maybe?
Stateside, keep your eye on the tariffs. Trump’s taxes on imports are like an unpredictable guest at a dinner party. They might change the whole feel of the economic room, with growth and inflation on the line as the U.S. chats with the Group of Seven in Canada.
Expect some financial forecast buzz from the Fed later this week. They’ll unveil their economic crystal ball, thanks to Bank of America hinting at one more interest cut this year and possibly three in 2026. With inflation behaving itself, the Fed has stayed coy, holding back from tweaking interest rates. But traders expect no moves from them this week.
Gold, the safe-haven asset, saw a dip, losing 1% to settle at $3,417.30. Guess investors are feeling a bit braver. Meanwhile, on the Wall Street merry-go-round, Sage Therapeutics enjoyed a 35.4% leap after [Supernus Pharmaceuticals](https://www.supernus.com/) announced plans to buy it. U.S. Steel had a 5.1% lift, too, as [Trump](https://www.trump.com/) got all executive order-y with Nippon Steel from Japan.
Defense contractors, though, didn’t keep up their adrenaline from Friday. Lockheed Martin and Northrop Grumman dropped, with the former down 4% and the latter 3.7%. Talk about a mixed bag.
In the grand finale, the S&P 500 closed at 6,033.11. The Dow ended at 42,515.09, and the Nasdaq called it a day at 19,701.21. Stocks in China got a little boost from hot consumer spending but lagged with factory and investment growth. It’s all a big, wild mix. Just another manic Monday in the world’s financial heartbeat.
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AP Writer Jiang Junzhe lent a hand on this one.
