U.S. stocks opened sharply higher on Monday after President Donald Trump said he had called off planned military strikes against Iran, easing fears of a broader conflict in the Middle East and triggering a sharp decline in crude oil prices.
At 9:32 a.m. EDT, the Dow Jones Industrial Average was up 646.47 points, or 1.23%, at 53,131.50. The S&P 500 gained 36.23 points, or 0.48%, to 7,525.95, while the Nasdaq Composite rose 65.50 points, or 0.26%, to 25,439.36.
The gains came after Trump said on Sunday that he had cancelled a planned attack on Iran and that negotiations between Washington and Tehran would resume on Monday.
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The remarks marked a sharp shift in tone after U.S. media reports last week suggested Washington was preparing a fresh round of strikes as diplomatic efforts faltered and energy prices surged.
Oil prices retreated sharply in response, offering relief to equity markets. Brent crude fell about 6% to $82.95 a barrel, while West Texas Intermediate (WTI) dropped nearly 7% to $78.93 a barrel.
Treasury yields also eased as concerns over renewed inflationary pressure from higher energy prices moderated. The benchmark 10-year U.S. Treasury yield declined around 7 basis points to 4.67%.
However, market participants remained cautious.
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