U.S. stocks saw hesitant gains Monday as markets braced for President Trump's deadline to potentially bomb Iranian power plants, a conflict that has already driven up oil prices and sparked inflation concerns, despite a positive U.S. jobs report.
U.S. stocks experienced modest gains on Monday, reflecting investor uncertainty and anticipation ahead of President Donald Trump's critical Tuesday deadline to attack Iranian power plants if the Strait of Hormuz is not reopened. Iran's diplomatic mission in Cairo stated they would only accept an end to the ongoing war with firm guarantees against future aggressions, as fighting continued with an Israeli strike on an Iranian petrochemical plant. Trump reiterated his deadline as final, threatening severe destruction to Iran. Simultaneously, markets reacted to a positive Friday jobs report, which showed higher-than-expected hiring and an improved unemployment rate, offering a glimmer of hope for an economy burdened by soaring gasoline prices, now nearly $4.12 per gallon. The conflict has significantly impacted global oil markets, with benchmark U.S. crude rising to $112.41 and Brent crude to $109.77 per barrel, well above pre-war levels, disproportionately affecting oil-importing nations due to disrupted Persian Gulf supplies. On Wall Street, Big Tech stocks showed mixed results, while bank stocks, including JPMorgan Chase, performed strongly. CEO Jamie Dimon acknowledged the U.S. economy's resilience but warned of high asset valuations. Major indices like the S&P 500, Dow, and Nasdaq all closed higher. In the bond market, Treasury yields remained elevated, contributing to higher loan rates. A report on the U.S. services sector indicated continued growth in March, though slightly slower than anticipated, with inflation showing its fastest acceleration since 2022. International markets saw gains in Japan and South Korea, while many European and Asian markets were closed for holidays.
