U.S. stocks maintained their upward trend during Monday's midday trading, with the S&P 500 index advancing 0.3%. Reports indicated that Iran and the United States are exploring a ceasefire. Oil prices edged lower as traders assessed the likelihood of a potential swift conclusion to the U.S.-Iran conflict.
The Dow Jones Industrial Average climbed 110.97 points, or 0.24%, to 46,615.64. The Nasdaq Composite increased by 97.98 points, or 0.45%, reaching 21,977.16. The S&P 500 rose 20.00 points, or 0.30%, to 6,602.69. U.S. markets were closed on Friday for the Good Friday holiday.
According to a report from U.S. digital news outlet Axios, the United States, Iran, and a group of regional mediators are discussing terms for a potential 45-day ceasefire agreement. This agreement could lead to a permanent end to the war, although the possibility of reaching a partial deal before Tuesday's deadline is considered low. A White House official clarified to Axios that the 45-day ceasefire is just "one of many ideas" currently under discussion.
Other media reports suggested that Iran and the U.S. have received a proposal to end hostilities. If accepted, this plan would result in an immediate ceasefire and the reopening of the Strait of Hormuz. An anonymous source told media outlets that the framework for the proposal was developed by Pakistan and could take effect as early as Monday.
U.S. President Donald Trump is scheduled to hold a press conference with military officials at 1 p.m. Eastern Time.
John Stoltzfus, Chief Investment Strategist at Oppenheimer Asset Management, commented, "However, as the conflict with Iran enters its sixth week, persistent concerns over how long it will take to effectively resolve the situation are likely to remain a negative pressure for market participants to navigate in the near term." He added, "We maintain an optimistic outlook for the market and the U.S. economy this year. 'Resilience' is the key theme, providing enough opportunity for markets to climb the proverbial 'wall of worry.'"
U.S. stocks performed strongly last week. The S&P 500 gained 3.4% over the week, halting a five-week losing streak and marking the benchmark index's best weekly performance since late November. The Dow and Nasdaq also ended their respective five-week declines, with the Dow rising 3% and the Nasdaq surging 4.4% for the week.
Analysts noted that these gains were hard-won, as major indexes experienced significant volatility last week while markets continued to monitor the latest developments in the U.S.-Iran conflict and gauge when it might conclude.
On Sunday, President Trump warned that if the Strait of Hormuz is not reopened by Tuesday, the U.S. would strike Iranian power plants and bridges. Trump posted on Truth Social, "Tuesday will be Iran's power plant day and bridge day, all in one. It will be unmatched!!!"
At the start of the week, oil prices swung sharply in volatile trading. The May contract for West Texas Intermediate crude fell approximately 1%, trading just above $110 per barrel. The international benchmark Brent crude declined 0.3%, to slightly above $108 per barrel. Crude oil had moved higher during overnight trading.
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