US Stocks Close Higher Amid Ongoing US-Iran Diplomatic Tensions

U.S. Stocks Advance Amid Signs of Progress Toward U.S.-Iran Ceasefire Deal

U.S. stocks made gains on Monday, despite ongoing tensions between the U.S. and Iran, as investors looked for signs of progress toward a potential ceasefire agreement. The U.S. war on Iran has been a significant factor in market volatility over the past month, with spiking crude prices fueling inflation fears and stocks experiencing losses. Despite this, the S&P 500 and Nasdaq indexes are on track for their fourth consecutive day of gains, with the S&P 500 up 29.02 points, or 0.44%, to end at 6,611.71 points, and the Nasdaq Composite gaining 114.29 points, or 0.52%, to 21,993.47.

The Dow Jones Industrial Average also rose, increasing by 170.36 points, or 0.37%, to 46,675.03. Trading volumes were thin, however, as many markets in Europe and Asia are closed for public holidays. The ongoing tensions between the U.S. and Iran have had a significant impact on the market, with the S&P 500 remaining down about 4% since the conflict began.

Economic data released on Monday showed the U.S. services sector expanding at a slower-than-expected pace in March, with employment contracting in the sector. Prices paid, an inflation predictor, surged to its highest level since October 2022. The much-anticipated March jobs report showed the U.S. economy added 178,000 jobs last month, nearly triple the 60,000 consensus, an upside surprise dampened by a revision of February's job losses, to 133,000 from 92,000.

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Meanwhile, shares of Soleno Therapeutics jumped after Neurocrine Biosciences agreed to acquire the rare-disease drugmaker for $2.9 billion in cash. Rising bitcoin prices also boosted cryptocurrency firms Coinbase and Strategy. The U.S., Iran, and regional mediators continued to discuss terms of a potential ceasefire, with investors drawing reassurance from the ongoing talks.

The upcoming earnings season, which starts soon, is expected to show solid performance from corporate America, potentially justifying the current bull market. Market strategists are optimistic about the prospects for the market, with some noting that the day-to-day volatility and headlines can be "rather nauseating," but a sense of optimism remains in the air.