Stocks rally and oil dips after report says Iran is looking to de-escalate its conflict with Israel

From Yahoo Finance: 2025-06-16 16:17:00

U.S. stocks rose on Monday despite escalating attacks between Israel and Iran. The Dow, S&P 500, and Nasdaq all ended higher after falling on Friday. Crude oil prices also fell almost 2% after reports claimed Iran is looking to negotiate with Israel to end the conflict.

Investors in the U.S. seemed to shrug off escalating tensions between Israel and Iran as stocks rebounded to start the week, even after several confrontations resulted in hundreds of civilian deaths.

The Dow Jones closed 0.75% higher, the S&P 500 increased 0.94%, and the Nasdaq Composite rose 1.52% on Monday after Friday’s decline. Jeff Buchbinder, chief equity strategist for LPL Financial, credits the U.S. market’s resilience to a confluence of factors.

Despite U.S. crude oil surging on Friday, it fell almost 2% on Monday after reports that Iran wants to negotiate an end to the conflict with Israel. Both countries continued to attack each other’s energy facilities, with Israel striking Iran’s state television headquarters live on air.

The conflict in the Middle East adds uncertainty to the economy amidst concerns about President Trump’s tariff policies, immigration policies, and the GOP tax bill. Investors are also keeping an eye on the Federal Reserve meeting this week for potential interest rate changes.

Chair Jerome Powell’s statements at the Federal Reserve meeting will be closely watched for clues on when the central bank might make a move. The overall uncertainty in the economy, compounded by the conflict in the Middle East, is impacting investor sentiment.



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