U.S. stocks mounted a powerful comeback Monday after comments from Trump suggested the conflict with Iran could end sooner than previously expected, calming investor fears and sending equities higher.
The Dow Jones Industrial Average rose 239 points, or 0.5%, while the $S&P 500(.SPX)$ gained 0.8%. The tech-heavy $NASDAQ(.IXIC)$ led the rally, surging 1.4%.
The rebound marked one of the market’s largest intraday reversals in nearly a year.
Top Gainer: $SanDisk Corp.(SNDK)$ (+11.6%). Biggest Decliner: Paramount Skydance (-6.7%)
Best Sector: Technology (+1.8%). Worst Sector: Financials (-0.5%)
From Oil Shock to Market Rally
Oil
Markets opened sharply lower after crude oil futures briefly surged close to $120 per barrel, driven by fears of supply disruptions linked to the escalating Middle East conflict.
At the session’s low: The Dow Jones Industrial Average was down nearly 1.9%, the S&P 500 and Nasdaq Composite were both down about 1.5%
However, stocks reversed course after oil prices pulled back and Trump hinted the war might be nearing its end.
“I think the war is very complete, pretty much,” Trump said in remarks reported by CBS News.
Investors quickly rotated back into equities, worried about missing a potential post-war market rally.
Oil Volatility Drives Market Moves
Oil remains the biggest factor influencing global markets.
Benchmark crude prices briefly reached $119.50 per barrel before plunging later in the day. By the close:
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Brent crude traded around $89.79
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West Texas Intermediate (WTI) fell to $88.17
The sharp reversal followed coordinated signals from the Group of Seven that major economies are ready to tap strategic oil reserves if necessary.
The G-7 includes:
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Canada
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France
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Germany
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Italy
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Japan
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the United Kingdom
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the United States
Officials indicated they could release oil through the International Energy Agency, which represents 32 oil-consuming nations.
According to the IEA, governments hold roughly 1.2 billion barrels of strategic reserves, with an additional 600 million barrels in industry stockpiles.
Strait of Hormuz Disruptions Threaten Supply
The war has severely disrupted global energy flows through the Strait of Hormuz, one of the world’s most critical energy chokepoints. About 20% of global oil and natural gas supply normally passes through the narrow shipping route each day.
Analysts estimate that roughly 16 million barrels of oil per day currently cannot reach global markets due to the disruption. Some Middle Eastern producers, including Kuwait, Iraq, and the United Arab Emirates, have begun cutting production because export routes are effectively blocked.
Strategic Reserves Could Stabilize Markets
Strategists say emergency stockpile releases could temporarily stabilize energy markets.
However, the duration of the conflict will ultimately determine oil’s trajectory.
Key Events Investors Are Watching
Markets will turn their attention to upcoming earnings and economic data.
Companies reporting results include:
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BioNTech
Meanwhile, the National Federation of Independent Business will release its Small Business Optimism Index, offering insight into how smaller companies are navigating rising costs and economic uncertainty.
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