Oil prices ease back from their morning spurts as US stocks rally on a still hopeful Wall Street

NEW YORK (AP) — U.S. stocks climbed as hope remains on Wall Street that the global economy can still avoid a worst-case scenario because of the U.S.-Iran war. The S&P 500 rallied 1% Monday and is back to within 1.3% of its record. The Dow Jones Industrial Average added 0.6%, and the Nasdaq composite rose 1.2%. Even in the oil market, where prices jumped above $100 per barrel after ceasefire talks failed to end the war, prices pared their leaps as Monday progressed. The moves for financial markets overall were much more modest than the extreme swings that have hit since the war began in late February.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

NEW YORK (AP) — Hope remains on Wall Street that both sides in the U.S.-Iran war can still avoid a worst-case scenario for the global economy, and U.S. stocks climbed on Monday.

The S&P 500 rose 0.6% in late trading after erasing an earlier dip. The Dow Jones Industrial Average was up 102 points, or 0.2%, with an hour remaining in trading, and the Nasdaq composite was 0.8% higher.

Even in the oil market, where prices briefly jumped over $100 per barrel after 21 hours of ceasefire talks failed over the weekweekendend the U.S.-Iran war, prices pared their leaps as the day progressed. And the moves were much more modest than the extreme swings that have hit financial markets since the war began in late February.

After the weekend’s talks failed, President Donald Trump announced a blockade of the Strait of Hormuz, a maneuver that raises the pressure on Iran by trying to prevent it from making money by selling oil.

A blockade would keep even more oil off the global market, after prices already jumped for everyone worldwide because of Iran’s restrictions on traffic in the important strait. That narrow waterway is how much of the oil produced in the Persian Gulf area reaches customers worldwide.

Iran responded by threatening all ports in the Persian Gulf and the Gulf of Oman.

“Security in the Persian Gulf and the Sea of Oman is either for everyone or for NO ONE,” the Islamic Republic of Iran Broadcasting reported Monday. “NO PORT in the region will be safe,” according to a statement from the Iranian military and the Revolutionary Guards.

The price of Brent crude, the international standard, rose 4.4% to settle at $99.36 per barrel and is well above its roughly $70 price from before the war. But it remains below the $119 peak it’s touched at times, when worries about the U.S.-Iran war have been at their heights. It also pulled back from its nearly $104 price reached earlier Monday morning.

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Financial markets are taking some encouragement from signs “that the broader ceasefire seems to be holding, for now,” according to Sameer Samana, head of global equities and real assets at Wells Fargo Investment Institute.

In the meantime, big U.S. companies are beginning to tell investors how much money they made during the first three months of the year. Strong reports could help make up for worries about the Strait of Hormuz on Wall Street because stock prices tend to follow the trend of corporate profits over the long term.

Goldman Sachs, the investment bank, said it made $5.63 billion in profit during the quarter, more than investors expected. But financial analysts pointed to some potentially concerning signals underneath the surface, including lower revenue from the trading of fixed income, commodities and currencies. Its stock fell 1.9%.

Big banks traditionally lead earnings reporting season each quarter, and Citigroup, JPMorgan Chase, Wells Fargo, and Bank of America will all report later this week. So will Johnson & Johnson, Netflix and PepsiCo.

Helping to lead Wall Street was Sandisk, which jumped 10.6% after learning it will replace Atlassian Corporation in the Nasdaq 100 index before trading begins on April 20. It will get included in such funds that track the index as Invesco’s QQQ, which controls nearly $395 billion in investments.

Oracle’s gain of 11.8% was the biggest in the S&P 500, which helped it recover some of its sharp loss for the year so far on worries that it may be spending too much to build up its artificial-intelligence capabilities.

Different kinds of worries about AI have been hammering software companies, raising the risk that their businesses may become obsolete. They also rallied to recover some of their big recent losses.

ServiceNow climbed 6.8% to trim its loss for the year so far to 42.1%, and AppLovin climbed 5.2% to get its loss for 2026 down to 38.9%.

In the bond market, Treasury yields ticked lower as oil prices receded from their morning highs. The yield on the 10-year Treasury fell to 4.29% from 4.31% late Friday.

That could offer some reprieve for the housing market and rates for mortgages, which have been climbing with Treasury yields since the war began on worries about high oil prices and inflation. A report on Monday said that sales of previously occupied homes were weaker in March than economists expected.

In stock markets abroad, indexes fell across much of Europe and Asia. Hong Kong’s Hang Seng fell 0.9%, and South Korea’s Kospi dropped 0.9% for two of the world’s larger losses.

“The outcome of the talks was not really what people were hoping for, that’s for certain,” Neil Newman, Managing Director, Head of Strategy at Astris Advisory Japan, said in Hong Kong about the U.S.-Iran negotiations.

“As we stand here at the moment, it doesn’t look very nice. Certainly, the oil prices are a big concern.”

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AP journalists Yuri Kageyama, Matt Ott and Mayuko Ono contributed to this report.

Stan Choe, The Associated Press

Oil prices ease back from their morning spurts as US stocks rally on a still hopeful Wall Street

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