News

US Stock Highlights: Wall Street managed to claw back early losses and end near session highs on Monday, as easing geopolitical fears and renewed deal optimism steadied sentiment.The Dow Jones Industrial Average closed up 0.6%, while the S&P 500 rose over 1%. The Nasdaq Composite outperformed, jumping more than 1.2%, driven by a sharp rebound in tech.Stocks reversed course through the session after President Donald Trump signalled that Iranian leadership had reached out to his administration earlier in the day to “work out a deal”.The development came shortly after Trump threatened to destroy Iranian ships attempting to disrupt a US-led blockade in the Strait of Hormuz—marking a sharp escalation before signs of de-escalation emerged.Oil prices, which had surged earlier on supply concerns, also cooled off. Brent crude pared gains to rise about 2% and hover below $100 per barrel, while WTI held near $99, easing some immediate inflation concerns.

Tom Lee of Fundstrat said the ongoing market rally reflects investor confidence in a favorable resolution, even amid the “fog” of war.Speaking on CNBC’s “Power Lunch,” Lee noted that markets have a strong track record of discounting future outcomes, suggesting the current upward move signals expectations of a positive end to the conflict.He also highlighted historical precedent, pointing to World War II, when markets bottomed in 1942 well before major military progress, underscoring the tendency of equities to anticipate turning points ahead of time.Wall Street strategists are increasingly signalling that the recent market correction may have bottomed out, even as geopolitical tensions persist. Tom Lee of Fundstrat said “the bottom is likely in,” pointing to multiple indicators suggesting a recovery is underway.Among them, stocks rallied despite rising oil prices in late March, breaking the earlier inverse correlation, while easing tensions and a ceasefire phase helped stabilise markets. Additionally, the CBOE Volatility Index has cooled significantly, dropping below 20 after previously spiking above 35 — a sign of improving risk sentiment.The S&P 500 is now seen potentially reaching fresh all-time highs within six months. Echoing the optimism, Ed Yardeni of Yardeni Research said markets may be learning to navigate geopolitical conflicts, maintaining a year-end target of 7,700 for the index.The improving outlook comes as earnings season begins, with expectations of 12.6% profit growth, marking a sixth straight quarter of double-digit earnings expansion.Yahoo FinanceGoldman Sachs has identified a list of 10 oil stocks expected to benefit from a prolonged West Asia conflict, as elevated crude prices continue to support the sector.Strategist Neil Mehta highlighted that the picks offer above-average upside assuming Brent crude at $75 per barrel, with potential for stronger gains if prices remain higher.Among the key names, ConocoPhillips, Cenovus Energy, and Halliburton stand to gain from a bullish long-term oil outlook, while Ovintiv, Permian Resources, and EQT Corporation are seen benefiting from improved risk-reward in US exploration and production.

Evercore has upgraded Toll Brothers and PulteGroup to “outperform,” citing resilience in higher-end housing segments despite broader sector challenges.

Analyst Steven Kim noted that while homebuilders continue to face pressure from rising mortgage rates and weak consumer sentiment, premium segments such as move-up and active adult housing have held up better, supporting margins and limiting downside.

Evercore sees significant upside, with a price target of $176 on Toll Brothers implying nearly 26% gains, and a $146 target on PulteGroup suggesting about 21% upside. The brokerage also upgraded Masco, highlighting its favourable pricing dynamics and limited exposure to new residential construction.

Goldman Sachs CEO David Solomon struck a cautious yet optimistic tone on dealmaking, even as geopolitical tensions, including the Iran conflict, cloud the outlook.Solomon noted that 2026 began with strong optimism and record market highs, but warned that “things rarely move in a straight line,” highlighting the uneven path ahead for markets and corporate activity.His remarks come as the earnings season kicks off for Wall Street, with Goldman’s results underscoring both resilience and the uncertainty shaping the dealmaking environment.

The S&P 500 briefly turned positive for the year in Monday’s session, marking a sharp turnaround from earlier losses driven by geopolitical tensions.

The index rose about 0.5% on the day, nudging it marginally into the green for 2026 after being down more than 7% at the height of the US-Iran war. The recovery reflects improving investor sentiment as fears around the conflict begin to ease.

However, the broader market picture remains mixed. The Nasdaq Composite and Dow Jones Industrial Average are still in negative territory for the year.

The rebound has been driven by expectations that the economic impact of the conflict will remain limited, with inv

LVMH reported weaker-than-expected quarterly sales, highlighting continued pressure on the global luxury sector amid geopolitical and demand challenges.

Organic sales rose just 1% in the March quarter, falling short of analyst expectations of 1.5%. The company said the ongoing Middle East conflict shaved about 1 percentage point off growth, underscoring the sector’s sensitivity to global uncertainty.

Despite the miss, LVMH pointed to resilience in a disrupted economic environment and flagged a strong start to the year in the US market.

The update comes as luxury players attempt a comeback after a post-2022 slowdown, when aggressive price hikes and shifting strategies pushed some consumers away. While demand from China remains soft, analysts expect growth to recover in the coming quarters as brands recalibrate and try to win back shoppers.

The CBOE Volatility Index, Wall Street’s key fear gauge, climbed back above the 20 mark on Monday, signalling a return of market nervousness after last week’s sharp drop.

The index rose to an early high of 21.58, reversing a steady decline seen after the U.S.-Iran ceasefire. The VIX had fallen sharply through the latter half of last week, dropping below 20 for the first time since tensions escalated earlier this year.

Markets had briefly calmed on hopes that geopolitical risks were easing, but Monday’s uptick suggests investors are not fully convinced.

Since the onset of the conflict in late February, the VIX has seen heightened volatility, peaking above 31 in March. While still below those highs, the latest move indicates that uncertainty continues to linger, with traders bracing for potential swings in the S&P 500.

Existing home sales in the US dropped sharply in March, hitting their lowest level since June 2025 as elevated borrowing costs continued to weigh on demand. Data from the National Association of Realtors showed sales fell 3.6% month-on-month to a seasonally adjusted annual rate of 3.98 million, missing market expectations.

The slowdown coincided with a spike in mortgage rates, with the average 30-year loan touching 6.64% late in the month, according to Mortgage News Daily. While rates have since eased slightly following geopolitical de-escalation linked to the US-Iran ceasefire, affordability pressures remain.

Despite weaker sales, home prices continued to rise. The median price increased 1.4% year-on-year to $408,800, underscoring persistent supply constraints even as buyer activity cools.

Shares of Circle rallied sharply at the start of the week, climbing over 9% as optimism returned around regulatory clarity for crypto assets in the US. The move comes as the Senate reconvenes after a two-week recess, with unresolved discussions on the proposed Clarity Act back in focus.

The bipartisan bill aims to clearly define oversight of digital assets, but negotiations have been held up by disagreements over stablecoin regulation. Still, investors appear to be betting on progress.

Coinbase, a key partner in the USDC ecosystem, also rose more than 2%, reflecting broader sentiment across crypto-linked stocks.

Analysts say the rally is driven by expectations that the bill could soon be taken up by the Senate Banking Committee. There is also growing belief in markets that the Clarity Act could be passed within the year, offering long-awaited regulatory certainty.Donald Trump warned that Iranian vessels approaching the US-enforced blockade in the Strait of Hormuz would face immediate military action, escalating tensions in a critical global oil corridor.The warning came on the sidelines of the blockade’s implementation, with the US aiming to restrict vessels entering or leaving Iranian ports as part of efforts to curb Tehran’s oil exports. Trump also claimed significant damage to Iran’s naval capabilities, while noting that smaller “fast attack” boats had not been targeted.The development underscores rising geopolitical risks in the region, with potential implications for global oil supply and shipping routes through one of the world’s most vital energy chokepoints.

The United States military has officially begun enforcing a “blockade” of the Strait of Hormuz, targeting vessels entering or departing Iranian ports, while maintaining that navigation to non-Iranian destinations will not be disrupted.

The move comes at a time when Iran had been exporting over 2 million barrels of oil per day, with ports largely operational despite existing restrictions. A successful enforcement could significantly curb these exports, tightening global oil supply.

The development has raised concerns over energy markets, with US gasoline prices now expected to climb above $4.25 per gallon as supply risks intensify.

Amazon is leading the rebound among the “Magnificent 7” stocks, rallying sharply to test a crucial resistance zone after its strongest three-day surge in five months.The stock is now approaching a key technical hurdle around the $238–$240 range, which has capped gains multiple times since early 2025, while also facing a broader downtrend from previous highs. This places the stock at an important inflection point, with recent weakness suggesting a potential pause near resistance.A decisive breakout above $240 could pave the way for a retest of all-time highs near the $255–$260 zone. On the downside, the $220–$225 range remains a key support area, aligning with the 200-day moving average and recent buying interest.CNBCBitcoin pulled back to the $70,000 level over the weekend after ending the previous week on a strong note, as geopolitical tensions weighed on sentiment.The flagship cryptocurrency had closed above $73,000 on Friday, gaining around 9% for the week, marking its second straight weekly advance and its best performance since early October.Meanwhile, exchange-traded funds tracking Bitcoin saw robust investor interest, recording net inflows of $786.31 million for the week, the highest since late February.

US equities opened Monday’s session in the red, with the Dow Jones Industrial Average falling 251 points, or 0.5%. The S&P 500 and Nasdaq Composite also declined 0.2% each in early trade, indicating a cautious start to the week.The United Kingdom has said it is “not supporting” the United States blockade of Iranian ports, with Prime Minister Keir Starmer stressing that Britain will not be “dragged into” the ongoing Iran conflict.The remarks come as Emmanuel Macron confirmed that France and the UK will co-host a conference in the coming days aimed at restoring freedom of navigation in the Strait of Hormuz.Macron indicated the initiative would focus on a “peaceful multinational” and “strictly defensive” mission, positioning it as separate from any direct military involvement linked to the blockade.Shares of Williams-Sonoma rose over 2% after Goldman Sachs upgraded the stock to “buy,” citing attractive valuations and highlighting the company’s strong portfolio of retail brands.Meanwhile, Best Buy fell about 4% after Goldman downgraded the stock to “sell.” The brokerage flagged potential downside risks to sales beyond the first quarter, noting that rising memory costs could push up laptop and computer prices, impacting demand.Shares of Fastenal declined more than 4% despite reporting first-quarter results in line with Street expectations. The company posted earnings of 30 cents per share on revenue of $2.2 billion, matching analyst estimates.NewsLive TVMarketPopular CategoriesCalculatorsTrending NowLet's Connect with CNBCTV 18Network 18 Group :©TV18 Broadcast Limited. All rights reserved.