US Stock Market Rallies Amid Eased Iran Tensions and Mega-Earnings
The US stock market surged on Monday as treasury yields retreated after the US government canceled planned strikes on Iran, which eased concerns about oil prices and inflation. The Dow Jones Industrial Average index rose by nearly 694 points to close at 53,178.41, its highest level since February 2026. The Nasdaq Composite index jumped 540.04 points or 2.13% to close at 25,913.90, while the S&P 500 index advanced by 110.78 points or 1.48% to finish at 7,600.50.
The rally was led by heavyweight technology stocks, including Amazon, Microsoft, Nvidia, Meta Platform, Alphabet, and Tesla, which all gained between 3% and 6%. The surge in these stocks contributed heavily to Wall Street's overall gains on Monday. Investor sentiment was also boosted by a roughly 5% drop in oil prices after President Trump canceled the planned strikes on Iran.
On Tuesday, the focus will shift to another round of corporate earnings, including results from SpaceX, AMD, Caterpillar, Merck and McDonald's, among others. The expectations for these companies' earnings are high amid valuation concerns from some Wall Street analysts. Palantir reported a $1.94 billion revenue, registering 93% YoY growth, exceeding street estimates.