Stan Choe, AP Business Writer
NEW YORK (AP) — Calm downturns back to Wall Street, with US stocks rallying Monday, but oil prices are returning some of the first eruptions following Israeli attacks on Iran’s nuclear and military targets last week.
The S&P 500 was on track to regain nearly all declines since Friday, rising 1% in afternoon trading. The Dow Jones industrial average rose 361 points (0.9%) as of 12:42 pm east time, with the Nasdaq Composite rising 1.4%. They took part in global climbs due to stock prices spreading from Asia to Europe.
Israel and Iran continue to attack each other, leaving fears that a wider war could reduce the flow to Iranian oil customers. However, past conflicts in the region have only temporarily surged. They retreated through the narrow straits of the Strait of Hormuz off the coast of Iran, either in Iran or in other countries, after it showed that it would not damage oil flows.
This time, it helped to bring oil prices back to $70 per barrel on Monday, hoping that combat would be included in the same way.
The barrel of benchmark US oil fell 2% to $71.53, while the international standard Brent crude fell 2.1% to $72.69 per barrel. They both jumped about 7% on Friday after their first attack.
Following a report from the Wall Street Journal, he said Monday’s lower oil prices meant that Iran wanted to end hostility and resume talks over its nuclear program.
With another signal of worry in the financial market, gold prices returned some of the knee climbs from Friday. Ounce gold fell 1% to $3,418.90.
Wall Street has many other concerns, along with fighting in Iran and Israel. The key to this is President Donald Trump’s tariffs. This threatens to slow the economy and raise inflation if trade transactions with other countries are not carried out to cut Trump’s tax on imports.
The US is meeting for Canada’s six largest economy and seven conference groups, with tariff adopters pressing for talks.
Later this week, the Federal Reserve will discuss whether to cut interest rates or lower as a decision is scheduled for Wednesday. A nearly unanimous expectation among traders and economists is that the Fed will not move.
The Federal Reserve is hesitant to lower interest rates, and has been put on hold this year after cutting at the end of last year. Because they are waiting to see whether Trump’s tariffs hurt the economy and raise inflation. Inflation has remained relatively tame lately, with the Fed’s target approaching 2%.
More important to financial markets on Wednesday is perhaps the latest set of forecasts Fed officials will release for the economy and where interest rates are headed over the next few years. Bank of America’s economists expect to be able to make three more forecasts for interest rate cuts this year, three more times in 2026.
In the bond market, the 10-year Treasury yield rose to 4.42% from 4.41% on Friday
On Wall Street, Sage Therapeutics rose 35.7% in one of the market’s biggest profits after Supernus Pharmaceuticals said it would buy the biopharmaceutical company in a trade of up to $795 million, or $12 per share, if certain conditions were met.
US steel rose 5.1% after Trump signed an executive order on Friday that paved the way for Japanese Nippon Steel to invest in the company. Trump will have a unique impact on the operations of US steel based on the terms of the transaction.
They helped offset the defense contractor’s drop and returned some of the jumps from Friday. Lockheed Martin fell 3.8%, while Northrop Grumman sank 3.4%.
In overseas stock markets, indexes rose in most parts of Europe and Asia.
Data rose 0.7% in Hong Kong and 0.3% in Shanghai. Data then showed slow growth in factory activity and investment.
Korea’s Kospi rose 1.8%, while Japan’s Japan rose 1.3% against two major global profits.
AP writer Jiang Junzhe contributed.
Original issue: June 16, 2025 9:50am EDT
