Market professionals are seen working on the trading floor of the New York Stock Exchange (NYSE) as the opening bell rings in New York City on March 5, 2026.
Image credit: Angela Weiss | Afp | Getty Images
On Monday, equity markets saw gains and oil prices receded as Wall Street sought to rebound after a challenging week, with ongoing attention on the unfolding Iran conflict.
The Dow Jones Industrial Average climbed by 575 points, marking a 1.2% increase. The S&P 500 advanced 1.3%, and the Nasdaq Composite saw a 1.4% rise.
Shares of Meta jumped over 2% following a report, dismissed by the company as “speculative,” suggesting intentions to cut over 20% of its staff. Meanwhile, Nvidia also saw its stock increase by more than 2% in anticipation of its GTC conference, scheduled to commence on Monday.
These market shifts occurred after the S&P 500 recorded its third consecutive weekly decline, ending Friday at its lowest point for the current year.
Last week, crude oil prices surged, with Brent crude surpassing $100 per barrel for the first time since 2022. The escalation was primarily due to the effective closure of the Strait of Hormuz, a vital shipping passage, since the commencement of the conflict.
During Monday’s trading session, WTI crude declined by 4%, settling just under $95 a barrel, after having traded above $100 a barrel overnight. Brent crude also decreased, falling 2% to approximately $101 a barrel.
The drop in oil prices followed comments from Treasury Secretary Scott Bessent on CNBC Monday, confirming that the U.S. is permitting Iranian oil tankers to traverse the Strait of Hormuz. Further contributing to the decline was a Wall Street Journal report, citing officials, indicating an upcoming U.S. announcement of a multinational coalition to escort vessels through the Strait.
On Friday, President Donald Trump authorized military strikes against Iranian assets on Kharg Island. Although these attacks did not target oil infrastructure, Trump warned that the U.S. would contemplate striking such facilities should Iran persist in blocking the Strait.
Additionally, Trump informed NBC during the weekend that Iran is seeking a resolution, but he is not currently prepared to finalize one.
Wharton’s Jeremy Siegel commented on CNBC’s “Squawk Box” Monday, stating, “The market believes we hold the advantage regarding Iran, and a deal could materialize, potentially even this week.” He added, “While there’s significant lingering uncertainty, the market is certainly anticipating some outcome at present.”
Despite the geopolitical strains, the recent stock market decline has been comparatively mild. The S&P 500 continues to trade only 5% below its record high achieved earlier in the year.
Ed Yardeni, president of Yardeni Research, noted that “The S&P 500’s perceived resilience stems from the growing optimism in industry analysts’ collective earnings per share forecasts for 2026 and 2027.” He further remarked, “Evidently, they haven’t considered the potential adverse effects of an extended conflict and the Strait’s closure.”