07/04/2026 04:04 AST
Equities rose modestly while oil prices edged lower in a choppy session on Monday as investors awaited signs of a possible resolution to the Middle East war, as the US and Iran weighed the framework of a plan to end their conflict. Markets were closed in many countries for the Easter Monday and Tomb Sweeping Day holidays. But earlier in the day, investors had perked up after Axios reported that the US, Iran and a group of regional mediators were discussing the terms for a potential 45-day ceasefire that could lead to a permanent end to the war, citing four US, Zionist entity and regional sources with knowledge of the talks.
But Iran rejected a ceasefire and emphasized the necessity of a permanent end to the war in a response sent via Pakistan, the official IRNA news agency said on Monday.
US President Donald Trump warned of "hell" for Iran and, in an expletive-laden Easter Sunday social media post, threatened to target Iran's power plants and bridges on Tuesday unless it reopens the Strait of Hormuz, through which roughly a fifth of global energy traffic passes. "The market is on edge over this ultimatum and waiting for what comes next. Until we have some kind of concrete agreement it's hard to be fully committed to investing," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. "I liken it to going in about chest deep in the water. You're not fully committed but more than halfway."
On Wall Street, at 10.52 am ET (1452 GMT) the Dow Jones Industrial Average rose 73.57 points, or 0.13 percent, to 46,564.03, the S&P 500 rose 11.72 points, or 0.18 percent, to 6,594.44 and the Nasdaq Composite rose 57.35 points, or 0.24 percent, to 21,932.08. MSCI's gauge of stocks across the globe rose 1.94 points, or 0.20 percent, to 996.14.
In energy markets, US crude fell 0.56 percent to $110.92 a barrel and Brent fell to $108.74 per barrel, down 0.27 percent on the day.
US stocks briefly pared some gains on Monday after Institute for Supply Management data showed that the US services sector growth slowed in March, while prices paid by businesses for inputs climbed to near a 3-1/2-year high, an early sign that the prolonged war with Iran was boosting inflation pressures.
In currencies, the dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.37 percent to 99.89, with the euro up 0.33 percent at $1.1553. Against the Japanese yen, the dollar strengthened 0.09 percent to 159.7. The yen had flirted with the crucial 160 per dollar level after Japanese Finance Minister Satsuki Katayama on Friday put currency traders on notice, saying the government stands ready to act against speculative moves in foreign exchange markets as volatility has risen "significantly."
In precious metals, gold was little changed while silver dipped as market participants cautiously awaited further signals on the evolving US-Iran situation and its impact on global interest rates. Spot gold rose 0.1 percent to $4,680.29 an ounce and spot silver fell 0.37 percent to $72.71 an ounce.
Reuters
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