US Stocks Bounce Back as Mideast Tensions Ease

Stocks on Wall Street opened higher Monday, as tensions in the Middle East eased and US-Iran conflict paused. The S&P 500 rose by 0.6%, its first gain after two weeks of losses.

The Dow Jones Industrial Average jumped 518 points or 1% to 9:55 am Eastern time, while the Nasdaq composite increased 0.7%. Oil prices plummeted 5.4% to $86.74 a barrel for October delivery, following last week's surge above $100.

The US-Iran war had severely curtailed traffic through the Strait of Hormuz, disrupting global oil supplies and driving up gas prices and shipping costs.

Markets in Europe also rose after Asian markets closed higher. Tech companies like Microsoft and Google's parent Alphabet contributed to Wall Street's gains, jumping 2.6% and 2.8%, respectively.