US Stock Market: S&P 500 Index Posts Largest Gain Since February as US Temporarily Holds Back from Striking Iranian Energy Facilities

U.S. stocks rose on Monday after President Donald Trump instructed the Pentagon to delay strikes on Iran’s energy infrastructure, causing oil prices to retreat.

The S&P 500 index closed up 1.2%, its largest single-day gain since February 6.

All 11 sectors gained, led by non-essential consumer goods, materials, and technology.

The Nasdaq 100 index increased by 1.2%; the seven major tech giants’ index rose by 1.7%, the biggest gain since late January.

Brent crude oil fluctuated by over $18 intraday, finally closing below $100 per barrel for the first time in nearly two weeks.

The VIX index, which measures market volatility, rose above 30 to hit its highest intraday level since March 9 before retreating.

“We are cautiously skeptical about the news and tweets suggesting an imminent breakthrough this morning,” said Thierry Wizman, Global FX and Rates Strategist at Macquarie Group. “It’s unlikely that the war will continue past April, as Iran’s threat may be diminished by then, but large-scale military action is also unlikely to end within this week.”

Trump stated that after what he called “productive talks” with Iran, the U.S. will delay its strikes on Iran’s energy infrastructure.

Meanwhile, investors are assessing how weeks of high oil prices and rising inflation expectations might impact U.S. stocks.

Goldman Sachs Chief Economist Jan Hatzius said in a client report, “In the short term, the stock market outlook depends more directly on de-escalation, but our equity strategists still believe that the long-term fundamentals—including strong earnings, productivity improvements, and lower core inflation—do not support a bear market.”

At the close, the S&P 500 rose 1.2% to 6,581 points;

The Dow Jones Industrial Average increased by 1.4% to 46,208.47 points;

The Nasdaq Composite gained 1.4% to 21,946.76 points;

The Nasdaq 100 rose 1.2% to 24,188.59 points;

The Russell 2000 index increased by 2.3% to 2,494.227 points.