WASHINGTON (dpa-AFX) - After some early indecision, investors rallied late in the day to push Wall Street higher on Monday.
The major averages opened lower and hugged the unchanged line for much of the day as investors waited for Iran's response to the weekend U.S. air strikes on its nuclear sites.
Reports suggesting that Iran may block the Strait of Hormuz sent the markets briefly back into the red, as did reports of an Iranian attack on a U.S. base in Qatar.
But the markets spiked going into the close after Federal Reserve Vice Chair Michelle Bowman indicated support for a rate cut as early as July, citing concerns about the job market and potential easing of inflationary pressures related to tariffs. Additionally, reports of potential tariff reductions between the U.S. and China helped ease market anxieties.
For the day, the Dow jumped 374.96 points or 0.89 percent to finish at 42,581.78, while the NASDAQ rallied 183.56 points or 0.94 percent to close at 19,630.97 and the S&P 500 climbed 57.33 points or 0.96 percent to end at 6,025.17.
In economic news, the National Association of Realtors said that existing home sales rose 0.8 percent on month in May and saw a 6.2 percent increase in unsold inventory. On a yearly basis, existing home sales fell 0.7 percent.
The major European stocks finished modestly lower on Monday in the aftermath and uncertainty following the U.S. air strikes in Iran.
Germany's DAX sank 81.54 points or 0.35 percent to finish at 23,269.01, while the FTSE in London dipped 16.61 points or 0.19 percent to close at 8,758.04 and the CAC 40 in France shed 52.09 points or 0.69 percent to end at 7,537.57.
Crude oil prices were on a roller coaster ride on Monday, moving sharply higher earlier in the day in response to the U.S. bombing attack in Iran. But as it looks like Iran won't try to block the straight of Hormuz, prices plummeted later in the day. West Texas Intermediate crude for August delivery plunged $5.00 of 6.77 percent to $68.84 per barrel.
The price of gold also saw an initial bump on Monday in response to the air strikes, breaking briefly above $3,400 per ounce. It also faded, although nearly so dramatically, trading at $3,394.40 in the late afternoon.
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