Despite initial oil price spikes, markets rebounded on Monday as Iran's retaliation for US airstrikes failed to disrupt global oil supplies. US stocks rallied, and the price of oil plummeted.
Following US airstrikes on Iranian targets, initial concerns sent oil prices surging 6%. However, these gains quickly evaporated as Iran's response, a missile attack on a US airbase in Qatar, did not significantly impact oil flow. The price of oil dropped 7.2% to settle at $68.51, nearly returning to pre-conflict levels. This sparked a rally in US stocks, with the S&P 500 climbing 1%, the Dow Jones Industrial Average adding 0.9%, and the Nasdaq composite gaining 0.9%. Analysts attributed the market's positive reaction to Iran's apparent lack of interest in disrupting oil supplies, a move that would harm its own economy. While some experts remain cautious about Iran's future actions, the absence of a major oil supply disruption eased market fears. Tesla's stock performance also significantly boosted the S&P 500, rising 8.2% after commencing self-driving taxi tests. Conversely, Hims & Hers Health plummeted 34.6% following Novo Nordisk's decision to end their partnership. European markets saw mixed results, while the bond market showed easing yields after a Fed governor signaled potential rate cuts.
