Wall Street rallied on Monday as the Nasdaq Composite added 2% to open August, extending a recovery from a bruising July. President Trump's comments that negotiations with Iran were set to begin the same day lifted the broader market, while tech shares drew separate support from strong earnings.
U.S. stocks rallied on Monday after President Trump said negotiations with Iran were set to begin this week. Technology shares extended a separate recovery from steep July losses, with strong second-quarter earnings from Microsoft and Amazon also providing support.
Nasdaq leads a broad rally
At 12:39 ET, the S&P 500 climbed 1.3% to 7,587.21 points. The Dow Jones Industrial Average surged 1% to 53,006.99 points. The Nasdaq Composite added 2% to 25,886.08 points, rebounding after leading July's losses. The tech-heavy gauge had fallen more than 3% in July as chip stocks logged their worst month since the financial crisis.
Iran talks lift sentiment
Trump told reporters on Sunday evening that negotiations with Iran were set to begin Monday afternoon, and said a deal covering the Strait of Hormuz was imminent. His comments came a day after he canceled a major planned attack on Iran following talks with regional mediators. Oil prices slid about 6% early Monday after Trump's remarks. Lower crude prices also raised hopes for lower energy-driven inflation in the coming months.
Earnings and jobs data ahead
Focus this week turns to a wave of second-quarter earnings and Friday's nonfarm payrolls report for July, which is expected to show a pickup in employment growth. Palantir Technologies reports later Monday, with AMD and SpaceX following on Tuesday in SpaceX's first-ever public quarterly release. Caterpillar, Merck and McDonald's also report this week.
Strength in the labor market gives the Federal Reserve more room to raise interest rates. Policymakers at the Fed's July meeting showed growing support for raising rates to quell sticky inflation.
Source: Investing.com
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