US stock markets traded modestly higher on Monday as easing oil prices lifted investor sentiment after the United States and Iran paused military attacks, reducing fears of a broader disruption to global energy supplies. Investors also turned their attention to a packed week featuring major corporate earnings and the Federal Reserve’s latest interest rate decision.
As of 9:55 a.m. Eastern Time, the S&P 500 rose 0.6%, the Dow Jones Industrial Average rose 1%, and the Nasdaq Composite rose 0.7%.
At the opening bell, the Dow Jones Industrial Average rose 226.2 points, or 0.44%, to 5,2173.42. The S&P 500 rose 52.2 points, or 0.70%, to 7,464.2​, while the Nasdaq Composite rose 260.4 points, or 1.04%, to 25,236.185.
Crude oil prices retreated sharply after surging last week, when escalating tensions between the U.S. and Iran fueled concerns over the stability of global oil supplies. Brent crude, the international benchmark, fell 5.4% to $86.74 a barrel for October delivery, reversing much of the previous week’s gains.
Market participants are now focused on the Federal Reserve’s policy meeting, with the U.S. central bank set to announce its interest rate decision on Wednesday. Investors will closely monitor the Fed’s statement and commentary for clues on the future path of monetary policy.
In the bond market, U.S. Treasury yields eased as investors positioned themselves ahead of the Fed meeting. The yield on the benchmark 10-year Treasury note slipped to 4.65%, compared with 4.69% at Friday’s close.
Key Stock Movers
Technology stocks provided support to the broader market. Microsoft shares climbed 2.6%, while Alphabet, Google’s parent company, gained 2.8%, as investors accumulated large-cap technology stocks ahead of a busy earnings season expected to provide fresh insight into corporate spending on artificial intelligence and cloud computing.
Nvidia shares dropped about 2%.
Baker Hughes stock rose 8.6% after the US oilfield services company reported a stronger-than-expected second quarter profit.
Bullion
Gold prices rose on Monday, as a pause in hostilities between the United States and Iran sent crude oil prices to a one-week low.
By 09:43 a.m. EDT (1343 GMT), spot gold gained 0.9% to $4,087.59 per ounce. US gold futures for August delivery rose 0.5% to $4,090.
Among other metals, spot silver rose 1.3% to $58.92 per ounce, platinum gained 2.3% to $1,625.31, and palladium climbed 3.4% to $1,285.79.
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