U.S. stock markets closed mixed on Monday, with crude oil and gold prices soaring and energy stocks broadly advancing. Airline shares mostly declined, while Maersk suspended certain Middle East bookings. NVIDIA announced a $4 billion investment in two photonics technology firms.
Major U.S. equity indices ended unevenly. The Dow Jones Industrial Average dropped 73.14 points, or 0.15%, to close at 48,904.78. The Nasdaq Composite gained 80.65 points, or 0.36%, finishing at 22,748.86. The S&P 500 edged up 2.74 points, or 0.04%, settling at 6,881.62.
Former U.S. President Donald Trump indicated that sanctions on Iran could be lifted if the country's next leadership demonstrates pragmatism. He stated that actions against Iran have "significantly exceeded initial plans." Trump added that military operations might continue for approximately four weeks. U.S. Central Command reported that large-scale strikes had destroyed the headquarters of Iran's Islamic Revolutionary Guard Corps. U.S. Defense Secretary Hagerty dismissed concerns that conflict with Iran could evolve into the type of "endless war" he previously vowed to avoid, emphasizing that "our generation understands the stakes more clearly."
Miller Tabak + Co. Chief Market Strategist Matt Maley noted that flat index closes suggest investors are underestimating market risks from the Iran conflict, particularly amid other recent pressures on equities.
Crude oil prices surged over 6% on Monday as market participants feared escalating U.S.-Iran hostilities could lead to major supply disruptions. Iran is OPEC's fourth-largest oil producer. JPMorgan analysts warned that if the Strait of Hormuz were completely closed due to Middle East conflict, regional oil producers might only sustain production for "up to 25 days." Beyond that, storage constraints would force shutdowns, the analysts wrote. JPMorgan's commodities team noted that crude exports through the Strait of Hormuz have fallen to 4 million barrels per day, compared to normal levels of 16 million barrels.
Brent crude futures rose $4.87, or 6.68%, to settle at $77.74 per barrel. West Texas Intermediate crude for April delivery gained $4.21, or 6.28%, closing at $71.23 per barrel. Energy stocks broadly advanced: ExxonMobil rose over 1%, Chevron gained more than 1%, ConocoPhillips climbed over 4%, while SLB dipped 0.15%, and Occidental Petroleum increased over 2%.
Spot gold rose 0.97% to $5,330.12 per ounce in late New York trading, while COMEX gold futures advanced 1.81% to $5,342.80 per ounce.
Shipping giant Maersk announced operational measures to ensure staff safety, protect cargo, and maintain service stability in affected Middle East trade routes. Effective immediately, the company suspended bookings for refrigerated and hazardous/special cargo moving to/from the UAE, Oman, Iraq, Kuwait, Qatar, Bahrain, and Saudi Arabia until further notice.
Airline stocks mostly declined: Boeing rose 0.87%, but American Airlines fell over 4%, Delta Air Lines dropped more than 2%, Southwest Airlines declined over 2%, and United Airlines lost nearly 3%.
Most major technology stocks advanced, with the Wind US Tech Seven Giants Index rising 0.56%. NVIDIA gained nearly 3%, Microsoft climbed over 1%, Facebook added 0.83%, Apple and Tesla each rose 0.2%, while Google fell over 1% and Amazon declined 0.77%.
OpenAI founder Sam Altman stated that OpenAI has reached a potential agreement with the U.S. Department of Defense regarding the use of its AI models and tools, though the contract remains unsigned. OpenAI retains control over technical safeguards, deployment targets, and regions, with deployment limited to cloud environments. The U.S. government conceded to include OpenAI's "red lines" in the contract, prohibiting AI use in autonomous weapons, mass domestic surveillance, and critical decision-making domains.
NVIDIA is investing a total of $4 billion in two companies developing photonics technology to strengthen its R&D pipeline and supply chain, supporting large-scale AI infrastructure development.
SpaceX is considering a confidential filing for its initial public offering as soon as March. According to informed sources, SpaceX may seek a valuation "exceeding $1.75 trillion" in the IPO, with potential fundraising reaching up to $50 billion.
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