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 427 points, or 0.9%. The S&P 500 rose 1.1%, 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 2% as its GTC conference kicked off 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, West Texas Intermediate crude traded 5% lower at $93 a barrel. It traded above $100 per barrel overnight. Brent crude fell 3% to around $100 a barrel.
Oil prices declined after Treasury Secretary Scott Bessent told CNBC Monday that the U.S. is allowing Iranian oil tankers to 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.
However, President Donald Trump’s remarks to reporters midday Monday seemed to indicate that coalition wasn’t quite put together yet, as he encouraged other countries to get involved.
Oil traded off its lows following his comments, but it was still lower on the session. Stocks were also off their highs. The Dow was up more than 600 points, or 1.3%, at its peak, while the S&P 500 and Nasdaq were up 1.4% and 1.6%, respectively.
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 really feels that Trump has the market’s interest, I think, in his mind long term,” said David Krakauer, vice president of portfolio management at Mercer Advisors. To be more specific, it “still is somewhat relying on thinking that he can end this if he really wants to if things start to get bad.”
The stock sell-off has been relatively tame despite the geopolitical tensions. In fact, the S&P 500 remains just more than 4% below its all-time high set earlier this year.
“There is uncertainty. Things change quickly,” Krakauer also said to CNBC. “In the fog of war, you sort of just stay put.”
Monday’s bounce was overdue after weeks of pressure amid the Iran war. However, it was not accompanied by strong volume, something bulls typically want to see to show conviction behind the move. Trading on both the NYSE and Nasdaq were well below average during Monday’s session.