U.S. stocks moved slightly higher on Monday as traders reacted to renewed tensions between Washington and Tehran while awaiting key inflation data later this week.
The S&P 500 rose about 0.3%, while the Nasdaq Composite gained 0.4%, both reaching record levels. The Dow Jones Industrial Average traded near the flat line.
Sentiment remained cautious after diplomatic tensions escalated over Iran’s response to U.S. proposals regarding the ongoing conflict. Uncertainty around the Strait of Hormuz and potential supply disruptions continued to support oil prices, which climbed around 3%.
Investors are now focused on upcoming U.S. inflation reports, including CPI and PPI data, which could show early effects of rising energy costs on prices. Core inflation remains relatively stable, but analysts warn that geopolitical risks may gradually feed into broader price pressures.
Despite global uncertainty, U.S. equities have continued their strong upward trend, supported by earnings strength, technology stocks, and expectations of future policy easing. Market participants remain focused on upcoming earnings from major companies including Alibaba, Cisco, and Applied Materials.