US stock markets staged a sharp rebound in the final hours of trading on Monday. This came after President Donald Trump said the conflict with Iran would end soon. “I think the war is pretty much over,” Trump told CBS, adding that US and Israeli forces were “very far ahead of schedule” with their airstrikes.
The remarks lifted investor sentiment. The Dow Jones Industrial Average closed 0.5 per cent higher at 47,740.74 points, after having been down nearly 2 per cent at the opening. The broader S&P 500 recovered 0.8 per cent to 6,795.99 points, while the tech‑heavy Nasdaq rose 1.4 per cent to 22,695.95 points.
Earlier in the day, markets had been unsettled by rising oil prices linked to the conflict in the Middle East. Higher energy costs raised concerns about renewed inflation, weaker economic growth, and pressure on company profits.
Decline
Oil prices surged to almost 120 dollars a barrel before falling sharply later in the session. West Texas Intermediate dropped 5.4 per cent to 85.99 dollars at the close, while Brent crude fell 3 per cent to 89.89 dollars. The decline followed Trump’s comments. He said he was considering taking control of the Strait of Hormuz, a key shipping route for regional fuel exports.
The earlier spike in prices came after major producers reduced output. This included Saudi Arabia, Kuwait, Iran and the United Arab Emirates closing the Strait of Hormuz. US oil prices had risen by more than 35 per cent last week, marking the largest weekly gain since oil futures trading began in 1983.
Oil companies such as Chevron, down 0.3 per cent, and ExxonMobil, down 0.5 per cent, surrendered their early gains by the end of the day. Caterpillar, which manufactures excavators, bulldozers and mining trucks, led the Dow with a rise of 3.5 per cent. Chipmaker Nvidia also advanced, closing 2.7 per cent higher.
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