US stock markets held near record levels on Monday, supported by a decline in oil prices on optimism over US-Iran nuclear talks, even as rising Treasury yields raised concerns about inflation and the outlook for interest rates, according to an Associated Press report carried by the Times of India.
US Market Summary
The S&P 500 edged up 0.1%, remaining within 1.3% of its all-time high touched earlier this month. The benchmark index is coming off its 11th weekly gain in the past 12 weeks. The Dow Jones Industrial Average rose 220 points, or 0.4%, while the Nasdaq Composite slipped 0.2% in early trade.
| Index | Change | Level / Note |
|---|---|---|
| S&P 500 | +0.1% | Within 1.3% of all-time high |
| Dow Jones Industrial Average | +220 pts (+0.4%) | — |
| Nasdaq Composite | -0.2% | — |
Oil and Geopolitics
Investor sentiment received a boost after weekend talks between the United States and Iran. US Vice President JD Vance said the discussions had created a "good foundation for a successful final deal". Markets are closely watching developments in West Asia as a lasting agreement could ensure uninterrupted oil shipments through the Strait of Hormuz, a critical route for global energy supplies.
Brent crude oil fell 2.8% to USD 78.34 a barrel, moving closer to the roughly USD 70 level seen before the conflict. Notably, Iran's military claimed on Saturday it had again closed the Strait of Hormuz, though US Central Command disputed the assertion.
Interest Rate Outlook
Despite the decline in oil prices, Treasury yields moved higher as investors assessed the possibility that the Federal Reserve may need to raise interest rates later this year to contain inflation. Economists expect a key inflation report due on Thursday to show consumer inflation accelerated to 4.1% in May from 3.8% in April.
The yield on the benchmark 10-year Treasury note rose to 4.49% from 4.46% on Thursday. According to CME Group data, traders are now pricing in nearly a 90% probability that the Fed will raise its benchmark rate at least once before the end of the year, up sharply from 57% a week ago. Higher bond yields have emerged as a concern for equity markets globally, particularly for richly valued technology stocks.
Corporate and M&A Highlights
Among individual stocks, SpaceX fell 6.1%, extending losses for a third straight session after a strong run following its stock market debut. The stock slipped below USD 174 after initially listing at USD 135 per share.
Healthcare major AbbVie gained 4.9% after announcing an agreement to acquire Apogee Therapeutics and its pipeline of treatments for dermatological, respiratory, and immune-related diseases. Apogee Therapeutics surged 46.9% following the announcement of the deal, valued at about USD 10.9 billion.
Global Markets
Outside the US, Britain's FTSE 100 rose 0.5% after Prime Minister Keir Starmer announced he would step down as Labour Party leader and leave office within weeks. Asian markets extended their rally: Japan's Nikkei 225 climbed 1.5% to a fresh record high, led by technology stocks benefiting from the artificial intelligence boom. South Korea's Kospi also gained 0.7% to reach a record level, supported by AI-related companies.
The next key event for markets will be the US inflation report on Thursday, which could influence the Fed's rate path and further shape equity sentiment.
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