US stocks climbed to a new all-time high on Monday after President Donald Trump said Israel's attacks on Lebanon would stop and that talks with Iran were continuing.
The S&P 500 Index finished 0.3% higher in New York, reaching a record high and extending its winning streak to eight sessions in a row. The technology-heavy Nasdaq 100 Index rose 0.6%, also hitting a record high. Brent crude rose 4.5% to $95.22 a barrel.
After a flare up of violence in Lebanon threatened to derail negotiations to end the war in Iran, Trump said Israel and Hezbollah had agreed to stop fighting. Trump touted a "productive" call with Israeli Prime Minister Benjamin Netanyahu, along with "very good" talks with Hezbollah.
Earlier, Iran's semi-official news reported the halt of exchanges between Tehran and Washington as a result of Israel's escalation in Lebanon.
"The longer the diplomatic impasse continues into June, the more persistent the moves higher in oil prices and Treasury yields could become," said Paul Christopher of Wells Fargo Investment Institute.
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Negotiations between the US and Iran will be drawn-out process, according to Ken Mahoney, chief executive officer at Mahoney Asset Management. In turn, the market is "turning the blind eye" to the conflict, instead focusing on stable levels of employment, strong earnings, and the stream of "massive" business-to-business deals and partnerships.
"For now, the market is like a horse with blinders focused on domestic data center build out and AI growth in general," he said.
| Matt Gertken, chief geopolitical strategist at BCA Research, said that Iran had attempted to force Trump to "discipline Israel and reduce the war against Hezbollah." The Trump administration is amenable to acting in an attempt to "salvage" the Senate in the midterm elections, he said. "But if the election becomes a lost cause, or after it is over, the administration will regain the ability to increase military pressure to prevent an outcome in which Iran exercises control over Hormuz shipping and retains highly enriched uranium stockpiles," said Gertken. "Thus the oil shock will expand again later, even if we are lucky enough to see it subside somewhat this summer." ALSO READ: Nvidia-Microsoft 'Spark' Deal Sends Intel, AMD Stocks Tumbling While Dell, HP Gain — Here's Why The AI PlayEarnings season is beginning to wind down, with just a handful of big names left to report. AI will likely be a heavy focus, with the theme continuing to help the market move higher. Broadcom Inc. and Crowdstrike Holdings Inc. will be ones to watch as the two companies have been viewed as beneficiaries from the increased focus on AI. Among single-stock moves, Nvidia Corp. surged 6.3% after announcing it would enter the PC market with a new chip with the aim of loosening the stranglehold of Intel Corp. on the sector. The new RTX Spark Superchip will debut in laptop and desktop computers from brands like Dell starting this fall. Software stocks advanced as Nvidia's Chief Executive Officer Jensen Huang rebuffed concerns that the industry is at risk of being disrupted by more advanced AI tools. The iShares Expanded Tech-Software Sector exchange-traded fund notched its best two-day advance since 2001. Meanwhile, International Business Machines Corp. jumped after an old clip of Trump praising the company's CEO recirculated online. MGM Resorts International gained after Barry Diller's People Inc. submitted a proposal to buy all outstanding shares of the casino operator that it does not already own. Sectors in Focus
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