WASHINGTON (dpa-AFX) - Stocks have moved sharply higher during trading on Monday, regaining ground following the nosedive seen over the past few sessions. The major averages have all shown substantial moves to the upside, bouncing off their lowest levels in several months.
Currently, the major averages are off their highs of the session but still posting strong gains. The Dow is up 958.28 points or 2.1 percent at 46,535.75, the Nasdaq is up 452.21 points or 2.1 percent at 22,099.82 and the S&P 500 is up 125.19 points or 1.9 percent at 6,631.67.
The recovery rally on Wall Street comes in reaction to President Donald Trump backing down from his threats to 'obliterate' Iran's power plants unless they fully reopen the Strait of Hormuz.
In a post on Truth Social, Trump said the U.S. and Iran have had 'very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East.'
Trump said he has subsequently instructed the War Department to postpone all military strikes on Iran's power plants and energy infrastructure for a five-day period.
The president later told CNBC's Joe Kernen that the U.S. is 'very intent on making a deal with Iran' after previously claiming he wasn't interested in a deal.
Trump had threated to 'obliterate' Iran's power plants if they didn't reopen the Strait of Hormuz within 48 hours.
Iran warned it would strike energy and water infrastructure across the Gulf in retaliation if Trump followed through with his threat.
While the price of crude oil has plummeted in reaction to Trump's latest claims, a report from Iran's official Fars news agency denied Tehran was engaged in any direct negotiations with the U.S. nor through intermediaries.
Sector News
Airline stocks are turning in some of the market's best performances, with the NYSE Arca Airline Index soaring by 5.3 percent after ending last Friday's trading at its lowest closing level in four months.
Substantial strength is also visible among gold stocks, as reflected by the 4.6 percent spike by the NYSE Arca Gold Bugs Index. The rally by gold stocks comes despite a steep drop by the price of the precious metal.
Networking stocks have also shown a significant move back to the upside, driving the NYSE Arca Networking Index up by 3.7 percent.
Steel, housing, oil service and computer hardware stocks are also seeing considerable strength amid broad based buying interest on Wall Street.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved sharply lower during trading on Monday. Japan's Nikkei 225 Index dove by 3.5 percent, while China's Shanghai Composite Index plummeted by 3.6 percent.
Meanwhile, the major European markets have moved to the upside over the course of the session. While the German DAX Index is up by 2.4 percent, the French CAC 40 Index is up by 2.0 percent and the U.K.'s FTSE 100 Index is up by 0.6 percent.
In the bond market, treasuries are regaining ground after moving sharply lower over the past few sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 5.3 basis points at 4.338 percent.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
