US Stocks Rebound to Pre-War Levels; S&P 500 Nears Record Despite Recent Oil Price Spike

US Stocks Rebound Amid Ongoing US-Iran War Tensions

US stocks rallied on Monday, recovering the last of their losses caused by the US-Iran war, as Wall Street remains hopeful that the global economy can still avoid a worst-case scenario. The S&P 500 rose 1% and returned to its pre-war levels, just 1.3% below its all-time high set early this year. The Dow Jones Industrial Average added 301 points, or 0.6%, and the Nasdaq composite climbed 1.2%.

Despite concerns about the ongoing war, markets were relatively calm, with oil prices paring their gains as the day progressed. The oil market had seen prices jump above $100 per barrel after ceasefire talks over the weekend failed to end the war. However, prices pulled back from their morning highs, and the moves for financial markets overall were much more modest than the extreme swings that have hit since the war began.

Markets have been pinballing between worries that the war will last a long time and hopes for a resolution, as all parties would benefit from a freer flow of crude oil. The US government's announcement of a blockade of the Strait of Hormuz, which raises the pressure on Iran by trying to prevent it from making money by selling oil, has added to the tension.

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Big US companies are beginning to report their earnings for the first three months of the year, and strong reports could help make up for Wall Street's worries about the Strait of Hormuz. Goldman Sachs, the investment bank, reported a profit of $5.63 billion in the quarter, more than investors expected. However, financial analysts pointed to some potentially concerning signals underneath the surface, including lower revenue from the trading of fixed income, commodities, and currencies. Its stock fell 1.9%.

Other companies that reported strong earnings include Sandisk, which jumped 11.8% after learning it will replace Atlassian Corporation in the Nasdaq 100 index, and Oracle, which gained 12.7% to recover some of its sharp recent losses.

The S&P 500 rose 69.35 points to 6,886.24, while the Dow Jones Industrial Average added 301.68 to 48,218.25, and the Nasdaq composite climbed 280.84 to 23,183.74. Treasury yields ticked lower as oil prices receded from their morning highs, potentially offering some relief for the housing market and rates for mortgages.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

In stock markets abroad, indexes fell across much of Europe and Asia, with Hong Kong's Hang Seng falling 0.9% and South Korea's Kospi dropping 0.9% for two of the world's larger losses.