Traders works on the floor of the New York Stock Exchange (NYSE) at the opening bell on March 5, 2026 in New York City.
Angela Weiss | Afp | Getty Images
Stocks rose on Monday, while oil prices pulled back as Wall Street tried to recover from another losing week, with investors monitoring the latest developments of the Iran war.
The Dow Jones Industrial Average added 575 points, or 1.2%. The S&P 500 rose 1.3%, and the Nasdaq Composite gained 1.4%.
Meta shares gained more than 2% on a report — which the company has called “speculative” — that it is planning to lay off more than 20% of its workforce. Additionally, Nvidia shares rose more than 2% ahead of its GTC conference, which begins Monday.
The moves come after the S&P 500 notched its third losing week in a row and closed at its lowest level of the year on Friday.
Oil prices rallied last week, with Brent crude settling above $100 per barrel for the first time since 2022. Crude soared as traffic in the Strait of Hormuz, a critical shipping route, has been effectively halted since the war began.
In Monday trading, WTI crude traded 4% lower at just below $95 a barrel. It traded above $100 per barrel overnight. Brent crude fell 2% to around $101 a barrel.
Oil prices declined after Treasury Secretary Scott Bessent told CNBC Monday that the U.S. is allowing Iranian oil tankers pass through the Strait of Hormuz. Also aiding the move out of oil was a Wall Street Journal report stating that the U.S. will announce soon a coalition of countries to escort ships through the Strait, citing officials.
President Donald Trump ordered on Friday strikes on Iran military assets located on Kharg Island. While the attack didn’t impact oil infrastructure, Trump said the U.S. would consider hitting those structures if Iran continues to block the Strait.
Trump also told NBC over the weekend that Iran wants to make a deal, but he is not ready yet.
“The market thinks we do have the upper hand here in Iran and they’re going to come to a deal and it might be this week,” said Wharton’s Jeremy Siegel on CNBC’s “Squawk Box” Monday. “Of course, a lot of tail uncertainty here, but certainly … the market’s thinking something right now.”
The stock sell-off has been relatively tame despite the geopolitical tensions, however. The S&P 500 remains just 5% below its all-time high set earlier this year.
“The apparent resilience in the S&P 500 is attributable to the increasing bullishness of industry analysts’ consensus estimates for earnings per share in 2026 and 2027,” wrote Ed Yardeni, president of Yardeni Research. “Apparently, they did not get the memo about the possible negative consequences of a protracted war and closure of the Strait.”
