(CTN News) – Following Israel’s attacks on Iranian military and nuclear Wall Street sites late last week, US markets rose on Monday, but oil prices have erased some of their early gains. Wall Street is back to normalcy.

Following a 1% rise in afternoon trade, the S&P 500 is poised to recoup virtually all of its losses from Friday. At 12:42 p.m. Eastern Time, the Nasdaq Composite jumped by 1.4%, while the Dow Jones Industrial Average rose by 361 points, or 0.9%.

Asian and European Wall Street stock market rallies included them.

Iran and Israel remain at odds, prompting concerns that a prolonged battle will impede Iran’s capacity to sell oil to its customers. In contrast, several regional conflicts have resulted in only temporary spikes in fuel prices.

They would not obstruct the passage of oil, whether from Iran or other countries, via the tiny Strait of Hormuz along Iran’s coastline, as evidenced by their behavior during the battle.

Oil prices were near $70 per barrel on Monday, indicating that the clash would be similarly constrained this time. Brent crude, the worldwide benchmark, fell 2.1% to $72.69 per barrel, while the price of benchmark US oil fell 2% to $71.53 per barrel. Both saw a 7% spike on Friday following the initial onslaught.

According to a Wall Street Journal story, Iran’s apparent determination to end the dispute and resume talks on its nuclear projects caused oil prices to fall on Monday.

As investors sought a safe haven for their funds, the price of gold rebounded somewhat from its previous high on Friday. This is another sign that financial market fear is declining. An ounce of gold currently costs $3,418.90, down 1% from the previous price.

Along with the tensions between Israel and Iran, Wall Street faces various other concerns. The most noteworthy of these are President Trump’s tariffs. These tariffs continue to jeopardize inflation and the economy due to a lack of trade deals with other countries to offset Trump’s import tariffs.

The prospective application of tariffs is overshadowing the Group of Seven meeting in Canada, which includes the United States and six of the world’s leading economies. The Federal Reserve is expected to decide on Wednesday whether to raise interest rates this week.

Experts and economists agree that the Federal Reserve won’t act.

Following the cut in interest rates at the end of last year, the Fed has decided not to implement a similar measure this years. The Fed made this decision due to the potential impact of Trump’s tariffs on the economy and inflation. Inflation has recently slowed and is approaching the Federal Reserve’s 2% target.

Wednesday’s financial markets are anticipated to focus on Federal Reserve members’ most recent estimates about their economic outlook and Wall Street interest rates for the next years.

Bank of America economists predict that interest rates will be cut three times in 2026, including once this year. As of late Friday, the 10-year Treasury yield had risen from 4.41% to 4.42% in the bond market.

Sage Therapeutics experienced one of the highest market surges after Supernus Pharmaceuticals announced that it will buy the biopharmaceutical business for up to $795 million, or $12 per share, if certain criteria are met, rising 35.7% on Wall Street.

The The stock increased by 5.1% after Trump issued an executive order on Friday that allows Japan’s Nippon Steel to invest in U.S. Steel.er the pact, Trump would have unrivaled control over U.S. Steel’s operations.

As a result, military contractors recoup part of their Friday gains due to a fall in decreases. Northrop Grumman’s stock dropped 3.4%, while Lockheed Martin’s fell 3.8%.

Most of Europe and Asia saw increases in their international stock market indices. Stocks in Shanghai and Hong Kong rose 0.3% and 0.7%, respectively, on statistics showing strong Chinese consumer spending in May, despite a decline in manufacturing activity and investment growth.

Significant gains were seen in South Korea’s Kospi, which rose 1.8%, and Japan’s Nikkei 225, which rose 1.3%.

SOURCE: BH