U.S. stocks rise as Iran diplomacy eases oil and yield concerns

  • U.S. stocks rose as expectations for U.S.-Iran diplomacy pushed crude futures and Treasury yields lower.
  • The Dow gained 125.89 points to 51,808.53 by 10 a.m. Monday.
  • Prediction markets priced a crude record by Sept. 30 at 0.5%.

U.S. stocks opened higher on Monday, Sept. 21, as falling crude futures and a decline in the 10-year Treasury yield eased immediate inflation concerns. The Dow gained 125.89 points to 51,808.53 by 10 a.m., while the Nasdaq Composite rose 327.92 points to 26,850.47, supported by buying in AI-related shares. Investor sentiment improved after Rezaei, secretary of Iran's Supreme National Security Council, said Tehran had conveyed seven conditions for negotiations with the U.S. and was considering a strategy to end the fighting quickly. President Trump has indicated openness to meeting Iranian President Pezeshkian during the United Nations General Assembly in New York. Crude markets also reflected reduced concern over a fresh price surge, with a prediction market placing the chance of crude reaching a new all-time high by Sept. 30 at 0.5%. Markets are also watching Trump's Sept. 24 Washington summit with Chinese President Xi Jinping, corporate results including Costco Wholesale's, and U.S. manufacturing, services and durable-goods data. Geopolitical risks remain elevated following Ukraine's large drone attack on Russia, a Houthi attack on Riyadh's airport and continued Iranian threats to shipping through the Strait of Hormuz.

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