Global Markets Rally as US-Iran Tensions Ease

Stocks on Wall Street opened higher Monday, as investors reacted to the news that the US and Iran had paused their attacks while negotiations for an interim ceasefire deal resumed.

The S&P 500 rose 0.8% early in the day, coming off two weekly losses in a row. The Dow Jones Industrial Average increased by 581 points, and the Nasdaq composite rose 1%. Brent crude oil prices dropped 6% to $90 a barrel after reaching as high as $102 last week.

CXMT, a Chinese memory chip maker, soared in its debut on Shanghai's technology board, becoming China's most valuable listed company with an estimated market capitalization of nearly $490 billion.

The pause in attacks and resumption of negotiations led to relief in the markets, with U.S. futures surging early Monday and oil prices dropping sharply. Stephen Innes of SPI Asset Management said that 'oil's sharp retreat... loosened the geopolitical knot that had been tightening around equities, currencies, bonds, and central banks for most of July.'