United States equities closed higher on Monday (Tuesday AEST), supported by stabilising oil prices as market participants monitored last-minute ceasefire negotiations between the United States and Iran.
The major benchmark indices all posted gains, with the Dow Jones Industrial Average rising 165.2 points, or 0.4%, to 46,669.9. The S&P 500 added 29.1 points, or 0.4%, to 6,611.8, while the Nasdaq Composite climbed 117.2 points, or 0.5%, to 21,996.3.
Investor sentiment was underpinned by ongoing diplomatic efforts, although uncertainty remains elevated ahead of a key deadline as U.S. President Donald Trump said the latest Iranian ceasefire proposal fell short of expectations.
“They made a proposal, and it’s a significant proposal. It’s a significant step,” Trump told reporters on the White House South Lawn during the traditional Easter egg roll.
“It’s not good enough, but it’s a very significant step,” he said, adding, “They’re negotiating now, and they’ve made a very significant step. We’ll see what happens.”
Iran has reportedly delivered a 10-point response via Pakistan, which is acting as a mediator between Washington and Tehran.
The proposal includes “a protocol for safe passage through the Strait of Hormuz, reconstruction, and the lifting of sanctions”, according to a translated report from Iranian state media outlet IRNA.
Negotiations appear to be intensifying, with multiple proposals under discussion. Reports indicate that U.S. and Iranian officials, alongside regional mediators, are considering a potential 45-day ceasefire that could eventually lead to a permanent resolution, though the likelihood of securing an agreement before the looming deadline remains slim.
Separately, a framework backed by Pakistan would see an immediate ceasefire and the reopening of the Strait of Hormuz if both sides agree, according to reports.
Despite the diplomatic push, Trump reiterated that the U.S. would strike Iran’s critical infrastructure if the Strait is not reopened by the deadline. He also signalled limits to further escalation.
“What would I like to do? Take the oil, because it’s there for the taking,” he said. “There’s not a thing they can do about it. Unfortunately, the American people would like to see us come home.”
Oil markets remained volatile amid the uncertainty. U.S. West Texas Intermediate crude for May rose 0.8% to settle at US$112.41 per barrel, while Brent crude gained 0.7% to $109.77 per barrel.
The conflict, now in its second month, has continued to weigh on financial markets. Elevated crude prices have heightened inflation concerns, contributing to earlier equity declines. Despite the recent rebound, the S&P 500 remains down 3.9% since the conflict began.
Economic data released on Monday painted a mixed picture. The U.S. services sector expanded at a slower-than-expected pace in March, while employment contracted.
Labour market data also surprised to the upside. The March jobs report, released during the Good Friday holiday, showed the U.S. economy added 178,000 jobs, significantly above the 60,000 consensus estimate.
However, the result was tempered by a downward revision to February’s figures, which showed job losses of 133,000 compared with the previously reported 92,000.
Among individual companies, shares of Soleno Therapeutics surged 32.3% after Neurocrine Biosciences agreed to acquire the rare-disease drugmaker in an all-cash deal.
Cryptocurrency-linked stocks also advanced as bitcoin prices rose, with Coinbase gaining 1.9% and MicroStrategy climbing 6.6%.
On the bond markets, 10-year and 2-year rates were up 0.7% and 1.2% to 4.339% amd 3.85%, respectively.
