US Stocks Hold Near Records As Oil Prices Climb After Trump Rejects Iran Proposal/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Oil prices climbed Monday after President Donald Trump rejected Iran’s latest proposal to end the war. Despite rising energy costs and inflation concerns, U.S. stocks remained near record highs. Strong corporate earnings and continued optimism about the economy helped support Wall Street.
Oil Prices And Stocks Quick Looks
- Brent crude rises above $102 per barrel
- Trump rejects Iran peace proposal
- US stocks remain near record highs
- Energy and travel sectors face pressure
- AI-related tech stocks continue rally
- Investors monitor China diplomacy closely
Deep Look
Oil Prices Rise As Iran Conflict Continues
The price of Brent crude oil, the international benchmark, climbed 1.6% to $102.90 per barrel after Trump described Tehran’s proposal as “totally unacceptable” during comments on Sunday.
The latest setback in negotiations increased concerns that the conflict could continue longer than investors had hoped.
The war has already severely disrupted global energy markets by effectively shutting down the Strait of Hormuz, one of the world’s most important oil transit routes.
Before the conflict began, Brent crude traded near $70 per barrel. Prices have since surged as oil tankers remain stranded in the Persian Gulf, preventing supplies from reaching international customers.
Trump’s China Trip Gains Greater Importance
Trump’s upcoming visit to China is now viewed as increasingly important in efforts to reduce tensions surrounding the war.
The White House hopes Chinese President Xi Jinping may pressure Iran into making concessions during negotiations.
China holds significant leverage because it remains the largest buyer of Iranian crude oil despite international sanctions.
Analysts say diplomatic developments during Trump’s Beijing meetings could heavily influence global oil prices and broader financial markets over the coming weeks.
Investors remain highly sensitive to any signals suggesting the Strait of Hormuz may reopen and allow energy shipments to resume normally.
US Stocks Stay Near Record Highs
Despite higher oil prices and inflation concerns, U.S. stock markets remained resilient Monday morning.
The S&P 500 edged slightly higher after reaching another record close Friday.
Meanwhile, the Dow Jones Industrial Average and the Nasdaq Composite traded mostly flat.
Investors continue focusing on several positive factors helping support equities:
- Strong corporate earnings
- Continued growth in artificial intelligence investments
- Economic resilience despite inflation pressures
- Optimism that the war may not permanently damage global growth
According to FactSet, more than 80% of companies in the S&P 500 that have reported earnings this quarter have exceeded analyst expectations.
Overall profit growth is currently projected near 28%, which would represent the strongest quarterly earnings expansion since late 2021.
Travel And Consumer Stocks Feel Pressure
Some sectors of the market struggled as higher fuel costs weighed on companies and consumers.
Businesses with large fuel expenses posted notable declines Monday.
Shares of Royal Caribbean fell 4.6%, while United Airlines dropped 2.6%.
Discount retailer Dollar General also declined sharply as investors worried higher gasoline costs could squeeze lower-income consumers.
Fertilizer producer Mosaic slipped after reporting disappointing earnings and citing higher raw-material costs linked to logistics disruptions from the Iran conflict.
The company said soaring sulfur prices and shipping complications continue affecting operations.
Tech Stocks Continue AI-Driven Surge
Technology companies tied to the artificial-intelligence boom remained among Wall Street’s strongest performers.
Nvidia rose 1.4%, while Micron Technology jumped nearly 5%.
Heavy investment in AI infrastructure, data centers and cloud computing continues driving strong demand for semiconductors and advanced computing hardware.
Analysts say enthusiasm around AI remains one of the biggest forces supporting stock valuations despite geopolitical uncertainty and elevated interest rates.
Housing And Bond Markets Show Mixed Signals
Meanwhile, fresh economic data showed the U.S. housing market remains sluggish.
A separate report Monday indicated sales of previously occupied homes improved slightly in April but failed to meet economists’ expectations.
In the bond market, Treasury yields ticked modestly higher, with the 10-year Treasury yield rising to 4.39%.
Yields remain well above levels seen before the Iran war began.
Higher Treasury yields generally increase borrowing costs for mortgages, credit cards and business loans, potentially slowing economic activity over time.
Still, investors appear increasingly confident the broader U.S. economy can withstand current geopolitical and inflation-related pressures — at least for now.
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