Markets Surge on Hopes Iran Conflict Avoided

Major U.S. stock indexes closed at record highs Monday as investors grew more optimistic that the conflict between Iran and Israel would not expand into a wider war. The S&P 500 rose 0.8%, and the technology-heavy Nasdaq Composite jumped 1.6%. Both indexes closed at all-time highs. The Dow Jones Industrial Average was the exception, dipping slightly by 0.15%. The rally was driven by signals that the recent military exchange was limited. This eased fears of a major regional war that could disrupt global oil supplies and trade. When such geopolitical tensions decrease, investors often return to riskier assets like stocks. The market's move reflects a relief that the immediate threat of escalation has passed. Analysts caution, however, that the situation remains delicate.