U.S. stock indexes surged Monday after President Donald Trump announced he would delay planned military strikes on Iranian energy infrastructure following "productive conversations" with Tehran.
Iran's Fars News Agency denied any direct or indirect talks with the U.S., while Israel confirmed it was conducting strikes on Iranian targets.
Global markets rebounded sharply. Dow E-minis rose 653 points, S&P 500 E-minis gained 85.25, and Nasdaq 100 futures added 312 points. The CBOE Volatility Index retreated from its two-week high.
Oil prices fell over 13%, with Exxon Mobil, Chevron, and Occidental Petroleum all down in premarket trading. Airlines including American and United jumped more than 4%.
Banks rallied, as JPMorgan Chase and Goldman Sachs each gained 1.6%. Investors slashed December rate hike odds to 20% from over 50%.
The Russell 2000 rose 2.5%, recovering from correction territory. Wall Street awaits key economic data this week. Synopsys rose 4% after Elliott Investment Management took a major stake.