Stocks Resume Gains After a Negative Week. Nasdaq Composite Reaches New Record.
Stocks rose while oil prices and bond yields fell on Monday as assets recover from a negative week.
The Dow Jones Industrial Average gained 0.71%, while the S&P 500 did so 1.49%. The tech-heavy Nasdaq Composite overperformed, jumping 2.26%. AI-related stocks including Intel, Qualcomm and Advanced Micro Devices led the gains.
Oil prices also continued their decline ahead of meetings between global leaders during the United Nations General Assembly this week. Brent crude, the international benchmark, fell more than 3.5% and hovered around $100 a barrel, while West Texas Intermediate, the U.S. benchmark, fell further and stood below $92 a barrel.
JPMorgan analysts said flows from the Middle East remain “surprisingly strong” despite repeated hits to critical infrastructure. President Donald Trump also said he would likely be open to meeting with Iranian President Masoud Pezeshkian, who is set to attend the UNGA in New York. He will travel to the country on Tuesday and is expected to address the summit, as well as hold meetings with counterparts on the sidelines of the event.
However, the countries keep exchanging threats in the meantime. The Iranian military said its intelligence shows the U.S. preparing a new, large-scale strike against the country and warned of “painful retaliation” across the region. Countries deemed to be backing the strike would be considered as involved in the conflict, forces added.
“If the U.S. makes any mistake against the Islamic Republic of Iran, all its positions and interests in the region will be targeted by sustained, effective and painful attacks,” Iranian forces said.
Iranian Revolutionary Guard Corps Hossein Mohebbi, on his end, said that “if a new aggression occurs,” the country “will certainly change the weaponry and the geography of the war.”
Trump, on his end, said he is in a “deciding mode” and “very big things” about the war will take place soon. “My question is, if and when do I blow the entire nation up? They better behave,” Trump said.
In this context, the U.S. Virtual Embassyin Iran urged Americans to leave the country immediately. In a publication on Sunday, the embassy said that “due to tensions in the Middle East, the security environment remains complex with the potential for unforeseen escalation.”
“Americans currently in the Middle East should exercise heightened vigilance and be aware of potential flight cancellations, airspace closures, and travel disruptions. Do not travel to Iran for any reason. U.S. citizens should leave Iran now,” the publication added.
Elsewhere, the office of California attorney general Rob Bonta announced on Monday a settlement reached with Paramount Skydance over its acquisition of Warner Bros. Discovery, a key step to close the deal. Shares of both companies soared as a result.
