Wall Street Recovers from Geopolitical Shock as US-Iran Dialogue Resumes

Major US indices closed higher on Monday, overcoming a volatile session triggered by the abrupt collapse of peace talks between the United States and Iran. The market initially plummeted on reports that the US had begun blocking ports in the Strait of Hormuz after Iran refused to abandon its nuclear ambitions, raising immediate concerns over global energy supply chains. Sentiment shifted rapidly after President Donald Trump indicated that the Iranian government was eager to reach a deal, sparking hopes for a truce and the restoration of critical crude oil and natural gas flows. This geopolitical pivot, combined with the start of the first-quarter earnings season, allowed indices to rebound from significant intraday lows. The Dow Jones Industrial Average gained 0.6% to close at 48,218.25, while the S&P 500 rose 1% to 6,886.24. The Nasdaq Composite, led by artificial intelligence giants, climbed 1.2% to finish at 23,183.74. Despite the overall gain, sector performance was mixed, with Consumer Staples, Financials, and Health Care all ending the session in negative territory. Corporate results provided a fundamental floor for the market. Goldman Sachs reported first-quarter adjusted earnings per share of $17.55 and net revenues of $17.23 billion, both exceeding consensus estimates. Fastenal Co. also reported a 13.6% year-over-year increase in adjusted EPS of $0.30, meeting expectations. On the macroeconomic front, the housing market showed signs of cooling. The National Association of REALTORS reported that existing home sales in March fell to 3.98 million units, missing the consensus estimate of 4.06 million units. While the CBOE Volatility Index (VIX) dipped slightly to 19.12, the session highlighted the market's extreme sensitivity to Middle Eastern stability.