US Stocks Rise Amid Reports of Accelerated Iran Nuclear Talks

Stocks Rise on Oil Price Drop Amid Ongoing US-Iran Talks

Wall Street traders sent stocks higher on Monday as oil prices pared their rally after President Donald Trump's statement that talks with Iran are continuing at a "rapid pace." Trump also announced that Israel and Hezbollah have agreed not to attack each other.

The S&P 500 index, which has been on an eight-day winning streak, is set to reach its longest winning streak since May 2025. Tech companies are leading the charge, with most shares in the S&P 500 experiencing gains.

US crude oil prices trimmed their jump to 5%, hovering near $91. Treasuries bounced from session lows as financial markets continued to be whipsawed by multiple geopolitical headlines following a flare-up in Middle East violence that jeopardized negotiations to end the conflict.

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Iran Suspends Talks with US

Earlier on Monday, Iran announced that it would suspend talks with the US in protest over Israel's offensive in Lebanon, according to the Tasnim news agency. Iran also threatened to completely close the Strait of Hormuz.

US Manufacturing Activity Expands

US manufacturing activity expanded in May at the fastest pace in four years, according to data from the Institute for Supply Management. The group's price gauge remained close to levels not seen since 2022, indicating that materials' costs continued to rise sharply for producers.

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

Federal Reserve's Next Move

The report added to speculation that the Federal Reserve's next move on interest rates will be a hike, combined with the renewed advance in oil.

The Institute for Supply Management's price gauge has been tracking the rise in materials' costs for producers. The gauge has been close to levels not seen since 2022, indicating that prices are likely to continue rising.

Market Outlook

Conditions in the Strait of Hormuz remain fragile, and the direction of energy prices will continue to play a key role in shaping the near-term outlook for inflation and interest rates. While progress toward a US-Iran agreement appears likely over time, recent strikes and conflicting statements from both sides highlight that key details remain unresolved.