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Alsharq Tribune-M.Essam
U.S. stocks closed higher on Monday as investors expressed renewed optimism that a deal could eventually be reached between the United States and Iran.
The Dow Jones Industrial Average rose 0.63 percent to 48,218.25. The S&P 500 added 1.02 percent to 6,886.24. The Nasdaq Composite Index increased 1.23 percent to 23,183.736.
Nine of the 11 primary S&P 500 sectors ended in green, with financials and technology leading the gainers by adding 1.73 percent and 1.72 percent, respectively. Utilities and consumer staples are the only laggards by going down 1.19 percent and 1.04 percent, respectively.
Stocks took a leg higher after U.S. President Donald Trump said: "We've been called by the other side." He added that "they'd like to make a deal very badly." Iran has not confirmed that the call has taken place.
The gains came despite the breakdown of weekend peace talks in Islamabad and the implementation of a U.S. blockade of all maritime traffic in and out of Iran's ports, which went into effect Monday. U.S. Central Command stated that the United States will not block vessels using the strait to reach non-Iranian ports.
The failure of negotiations reignited concerns that the conflict could last longer than initially feared, pushing oil futures prices sharply higher in the early session on Monday. Still, oil futures pared much of gains as investors digested the dynamics between the United States and Iran. West Texas Intermediate crude futures for May delivery gained 2.6 percent to settle at 99.08 U.S. dollars per barrel, while international benchmark Brent crude oil futures for June delivery rose to 99.36 dollars per barrel, up 4.37 percent.
Technology names provided a strong boost to the broader market. Software stocks performed particularly well, with Oracle rising 12.69 percent and Palantir Technologies advancing 3.37 percent. Goldman Sachs Group was a notable underperformer, falling nearly 2 percent despite reporting strong overall earnings, as disappointing trading results in its fixed income unit weighed on the stock.
Shares of all the "Magnificent Seven" tech giants ended higher except for Apple, with the biggest gain of 3.6 percent with Microsoft.
Investors are now still closely watching developments in the Middle East.
