US equities opened higher on Monday after Donald Trump signalled “serious discussions” with Iranian leaders.
The gains came despite the Middle East conflict continuing to broaden, underscoring how markets are responding to even tentative signs of diplomacy.
Investors remain cautious, however, with sentiment still highly sensitive to developments on both the negotiation front and the evolving conflict.
The S&P 500 rose 0.8% (51 points) to 6,420, while the Dow Jones Industrial Average gained nearly 400 points (+0.88%) to 45,562. The tech-heavy Nasdaq Composite also moved higher, climbing 157 points (+0.75%) to 21,105.
Sentiment was supported by comments from Donald Trump, who said the US is in “serious discussions” with what he described as a “new and more reasonable regime” in Iran.
However, he also reiterated a hardline stance, warning that the US could “obliterate” Kharg Island—a key piece of Iran’s oil infrastructure—if a deal is not reached soon.
The mixed messaging highlights a market increasingly driven by headline risk, with optimism over diplomacy tempered by the ongoing threat of escalation.
