Catenaa, Monday, June 16, 2025- US stocks rebounded sharply on Monday after a selloff on Friday, amid a report that Tehran is looking to de-escalate the conflict with Israel.
The Dow Jones Industrial Average rose roughly 1.1% %, while the S&P 500 also moved up 1.1%. The Nasdaq Composite gained 1.5%. The cautious optimism follows a bruising Friday session that saw the Dow plunge more than 700 points in a broad risk-off move.
Stocks moved to session highs after the Wall Street Journal reported Tehran may be willing to restart talks over its nuclear program.
The geopolitical flare-up comes at a delicate moment for markets already buffeted by tariff insecurity. Friday’s selloff dragged the major US indexes into negative territory for the week.
President Trump said on Sunday there’s a “good chance” of an Israel-Iran peace deal, but the hostilities may need to play out first. “Sometimes they have to fight it out, but we’re going to see what happens,” he told reporters.
Stocks such as Meta rose by 3.2%, Tesla by 1.4%., Taiwan Semiconductor Manufacturing Company by 2.5% and Nvidia by 1.7%.
Meanwhile, the 10-year Treasury yield rose to 4.42% while gold retreated by 1.1% from its record high price.
Looking ahead, markets overwhelmingly expect the Fed to hold rates steady on Wednesday. While President Trump has maintained pressure on Chair Jerome Powell to cut rates, current market dynamics may leave little room to budge.
