New york: US stocks closed higher on Monday, led by gains in major technology shares, as investors looked past rising oil prices and renewed uncertainty over the Iran war. The S and P 500 rose 0.19%, or 13.91 points, to close at a record high of 7,412.84, marking the first time the index closed above the 7,400 threshold.
According to Anadolu Agency, the Dow Jones Industrial Average also advanced 0.19%, or 95.31 points, to 49,704.47, while the Nasdaq Composite edged up 0.1%, or 27.05 points, to a record high of 26,274.12. Despite these gains, the Volatility Index (VIX), often referred to as the market's 'fear index,' rose 6.92% to 18.38.
The stock market gains came amid pressure from energy markets after US President Donald Trump rejected Iran's latest proposal to end the months-long conflict, calling it 'TOTALLY UNACCEPTABLE!' in a Truth Social post on Sunday. Trump told reporters that the month-old ceasefire between the US and Iran was 'unbelievably weak,' after earlier calling it 'on life support.'
In response to the ongoing conflict, President Trump announced his intention to suspend the federal gasoline tax temporarily and phase it back in once fuel prices decline, as pump prices surge amid the Iran war. Oil futures rose on the renewed geopolitical concerns, with US benchmark West Texas Intermediate crude climbing 2% to above $98 per barrel and international benchmark Brent crude gaining 2% to above $104.
Technology shares provided a supportive boost to Wall Street. Micron Technology surged 7% as the memory chip rally continued, while Nvidia saw a 2% increase. The S and P 500 and Nasdaq had rallied more than 2% and 4%, respectively, last week, with both indexes posting their sixth straight weekly gains. Meanwhile, the Dow recorded its fifth weekly gain in six weeks.
On the economic data front, existing home sales in the US showed a modest increase, rising 0.2% to 4.02 million in April.
European markets also saw mostly positive figures, with the pan-European Stoxx Europe 600 index gaining 0.11% to close at 612.83 points. In national markets, Germany's DAX 40 added 0.07% to 24,355.41, Italy's FTSE MIB 30 climbed 0.76% to 49,664.95, and the UK's FTSE 100 gained 0.36% to finish at 10,269.43. Conversely, France's CAC 40 fell 0.69% to 8,056.38, and Spain's IBEX 35 lost 0.21% to 17,852.50.