U.S. stocks surged on Monday, closing at session highs after President Donald Trump said Iran still wanted to make a deal following a deadlock in peace talks. The comments helped ease investor anxiety over the ongoing Strait of Hormuz blockade, which had sent oil prices sharply higher earlier in the session. Despite crude topping $100 a barrel for the first time in years, equities powered through the energy shock as traders bet the geopolitical standoff would ultimately resolve through diplomacy rather than escalation.
The S&P 500 (SPI:SP500) climbed 69.35 points, or 1.02%, to close at 6,886.24 — its highest finish since before the conflict began. The Nasdaq Composite gained 280.84 points, or 1.23%, ending the day at 23,183.74. The Dow Jones Industrial Average added 301.68 points, or 0.63%, to settle at 48,218.25. Small caps led the charge, with the Russell 2000 jumping 1.44%. All three major indexes are now back in positive territory for 2026, a notable turnaround after weeks of geopolitical selling pressure.
The session also marked the unofficial start of first-quarter earnings season, with 19 companies reporting results. Goldman Sachs (GS) delivered a mixed bag: net revenue jumped 14% to $17.23 billion and earnings per share came in at $17.55, powered by a record $5.33 billion haul from its equities trading desk. However, fixed income, currencies, and commodities (FICC) revenue fell 10% and missed analyst expectations by roughly $850 million. Shares slipped more than 2% as investors focused on the shortfall. The results set the tone for a week that will see several more major banks report, giving markets a clearer read on how corporate America is navigating rising energy costs and shifting rate expectations.
Notable Movers
Oracle (ORCL) surged roughly 10% after showcasing new artificial intelligence capabilities at its Customer Edge Summit in Austin. The company unveiled AI-powered enhancements across its utilities and cloud platforms, reinforcing its positioning in the enterprise AI race. The rally extended a strong run for the stock this year.
Allogene Therapeutics (ALLO) soared nearly 30% following positive phase 2 clinical data showing its CAR-T cell therapy improved eradication of cancer cells in lymphoma patients. The biotech had been under pressure heading into the readout, making the results a significant catalyst.
Goldman Sachs (GS) fell more than 2% despite the headline revenue beat. The FICC miss overshadowed record equities trading, and investors are watching closely for commentary on how Middle East volatility is affecting the dealmaking pipeline.
Conagra Brands (CAG) dropped more than 5% after announcing a CEO transition, with John Brase set to take over from Sean Connolly effective June 1. Leadership changes in the consumer staples space tend to rattle investors, particularly during a period of elevated input costs.
Looking Ahead
Investors face a packed week as first-quarter earnings reports accelerate, with several major financial institutions on deck. The trajectory of oil prices remains the dominant macro variable — West Texas Intermediate crude settled above $104 a barrel on Monday, and any further escalation around the Strait of Hormuz could quickly reverse the market’s newfound optimism. On the data front, markets will be watching for fresh inflation readings that could complicate the Federal Reserve’s path, particularly as a renewed “war premium” on energy feeds through to consumer prices. For now, the bulls have reclaimed momentum, but the situation in the Middle East remains fluid and any breakdown in diplomatic signals could trigger a swift reversal.