WASHINGTON (dpa-AFX) - After coming under pressure early in the session, stocks have regained ground over the course of the trading day on Monday. The major averages have climbed well off their worst levels of the day, with the Nasdaq and the S&P 500 reaching positive territory.
Currently, the major averages are turning in a mixed performance. While the Dow is down 198.80 points or 0.4 percent at 47,717.77, the S&P 500 is up 2.82 points or less than a tenth of a percent at 6,819.71 and the Nasdaq is up 49.03 points or 0.2 percent at 22,951.92.
The initial weakness on Wall Street came amid concerns about a re-escalation of the conflict in the Middle East after weekend talks between the U.S. and Iran failed to produce an agreement.
'They have chosen not to accept our terms,' U.S. Vice President JD Vance said in a brief news conference but left open the possibility that terms could still be reached. Iran said that 'unreasonable U.S. demands' prevented the progress of the negotiations.
A spike by the price of crude oil also weighed on Wall Street in early trading, with crude oil futures jumping back above $100 a barrel.
The surge in crude oil prices comes after President Donald Trump said the U.S. would blockade the vital Strait of Hormuz following the breakdown of negotiations with Iran.
'Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz,' Trump said in a post on Truth Social.
Trump also said the U.S. military is 'locked and loaded' and prepared to 'finish up the little that is left of Iran' at an 'appropriate moment.'
Selling pressure has waned over the course of the session, however, with traders seemingly optimistic that Trump will back down once again and avoid a return to war.
Sector News
Software stocks have shown a significant move back to the upside following recent weakness, driving the Dow Jones U.S. Software Index up by 2.6 percent.
Considerable strength has also emerged among computer hardware stocks, as reflected by the 1.3 percent gain being posted by the NYSE Arca Computer Hardware Index.
Oil service stocks are also seeing notable strength, while airline stocks have moved sharply lower, dragging the NYSE Arca Airline Index down by 2.1 percent.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday. Japan's Nikkei 225 Index fell by 0.7 percent, while Hong Kong's Hang Seng Index slid by 0.9 percent.
European have also moved to the downside on the day but have climbed off their worst levels. While the French CAC 40 Index is down by 0.4 percent, the German DAX Index is down by 0.3 percent and the U.K.'s FTSE 100 Index is down by 0.2 percent.
In the bond market, treasuries have bounced back near the unchanged line after seeing initial weakness. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price is up by less than a basis point at 4.321 percent.
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