Stocks rebound as oil falls, investors bet Israel-Iran conflict will remain limited
Stocks rebounded on Monday as investors were optimistic that the conflict between Israel and Iran may remain contained. The spike in oil prices due to the escalating conflict also eased.
The Dow Jones Industrial Average rose 248 points, or about 0.6%. The S&P 500 advanced 0.7%, while the Nasdaq Composite surged almost 1%.
WTI crude oil futures fell more than 1% to $71.87 a barrel after trading above $77 earlier in the overnight session.
Traders have been closely watching the Middle East after Israel’s strike on Iran Friday. Iran launched missiles in retaliation, increasing the severity of conflict in the region.
The attacks continued for a fourth day Monday, with the two countries targeting each others’ energy facilities, an escalation which could rattle the global economy and markets further in the new week. Iran said it is considering shutting down the Strait of Hormuz, a key route for the global oil market. Israel claimed on Monday to have achieved “aerial superiority” over Iran, according to a military spokesperson.
Source : CNBC
