US Stocks Trim Gains As Iran Mulls Attack On Israel; Gold, Oil Rally: What's Driving Markets Monday?

Market sentiment on Wall Street turned negative on Monday morning as traders grapple with escalating global geopolitical risks.

In a joint statement issued Monday, the United Kingdom, France and Germany urged Iran and its allies to avoid actions that could further escalate tensions and jeopardize prospects for a cease-fire and the release of hostages. The statement comes amid rising concern that Iran and its proxies could launch an attack on Israel in retaliation for the killing of Hamas political leader Ismail Haniyeh in Tehran late last month.

On the macroeconomic front, the New York Fed’s consumer expectations survey indicated a decline in mid-term inflation expectations but rising concerns about future debt repayments.

In response to the heightened geopolitical risks, West Texas Intermediate (WTI) crude, as tracked by the United States Oil Fund USO, surged 2.3% to $78 per barrel, marking its fourth consecutive session of gains.

Gold also attracted safe-haven demand, rising 1.5% and nearing all-time highs, now just 0.6% away.

The S&P 500 edged up 0.2%, paring earlier gains in the morning session, while bonds, as tracked by the iShares 20+ Year Treasury Bond ETF TLT, gained 0.3%.

Monday’s Performance In Major US Indices, ETFs

Major Indices	Price	1-day %chg
Nasdaq 100	18,567.58	0.3%
S&P 500	5,354.36	0.2%
Dow Jones	39,386.45	-0.3%
Russell 2000	2,062.46	-1.0%

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY rose 0.2% to $534.24.
• The SPDR Dow Jones Industrial Average DIA was 0.2% lower to $394.30.
• The tech-heavy Invesco QQQ Trust Series QQQ inched 0.5% higher to $452.74.
• The iShares Russell 2000 ETF IWM tumbled 0.9% to $204.43.
• The Technology Select Sector SPDR Fund XLK outperformed, up by 1.1%. The Real Estate Select Sector SPDR Fund XLRE lagged, down by 1.1%.

Monday’s Stock Movers

• Shares of regional lender KeyCorp KEY rose about 10% after Canada’s Scotiabank announced the purchase of a minority stake in the U.S. bank in an all-stock deal worth $2.8 billion. 
• Stocks reacting to earnings were Ballard Power Systems Inc. BLDP, down 3.6%, Barrick Gold Corporation GOLD, up 7.9%, and Monday.com Ltd. MNDY, up over 11%.
• Nvidia Corp. NVDA rallied over 4% following bullish notes from Bank of America and UBS.

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