Stocks Rebound on Ceasefire Hopes as Oil Pulls Back

Wall Street rebounded Monday after a volatile session as hopes the Iran conflict may be nearing an end drove a late-day risk-on shift, lifting equities and bonds while pulling oil sharply lower. Markets reversed steep early losses on geopolitical headlines, underscoring ongoing sensitivity to Middle East developments and reinforcing expectations for continued near-term volatility.

Key Headlines & Market Movers:

Geopolitics Drives Whipsaw Session: Stocks erased sharp intraday declines after President Trump signaled the conflict was largely complete, easing supply fears and sending crude lower from earlier highs above $100. The move highlighted how rapidly positioning is shifting with each headline, while G7 officials reiterated readiness to support energy markets if disruptions intensify.

Rates and Macro Backdrop in Focus: Treasury yields retreated after rising earlier on concerns that elevated oil prices could fuel stagflation risks, particularly following last week’s softer labor data. Strategists broadly cautioned that volatility may persist, with some raising downside risks for equities this year even as others framed spikes in volatility as potential buying opportunities.

• Corporate and Sector Movers: Travel and leisure stocks rallied alongside falling fuel prices, while tech outperformed with AI-linked hardware demand supporting earnings outlooks for some firms. Healthcare also saw outsized moves after a surprise obesity-drug partnership boosted sentiment, while select event-driven names rose on regulatory developments.

S&P 500 Sector Performance

Looking Ahead

Investors will remain focused on geopolitical developments, oil price stability, and any policy response tied to energy markets, with volatility likely to stay elevated in the near term. Macro attention will center on incoming inflation signals and Fed commentary as markets assess whether recent energy swings risk complicating the policy outlook.