US sharemarkets rose on Monday, with the S&P 500 and Nasdaq Composite closing at fresh record highs, although gains were modest as stalled negotiations between the United States and Iran lifted oil prices and tempered sentiment. The S&P 500 added 0.12% to 7,173.91, while the Nasdaq Composite gained 0.20% to 24,887.10, with both indexes also reaching new intraday highs. The Dow Jones Industrial Average fell 62.92 points, or 0.13%, to 49,167.79.
Donald Trump said over the weekend that plans to send US officials for ceasefire talks had been scrapped, noting discussions could instead take place remotely. Iranian officials also indicated no meeting with the United States is currently scheduled, highlighting ongoing uncertainty around negotiations.
Despite the geopolitical backdrop, markets remain near record levels following a strong recent rally. Investors appear to be looking through near-term developments, supported by expectations of continued earnings growth.
Earnings season is a key focus, with a heavy slate of major technology companies set to report this week. Companies including Alphabet, Microsoft, Amazon and Meta Platforms are due to release results, followed by Apple, with these firms accounting for a significant share of the S&P 500’s market capitalisation.
Oil prices moved higher as the stalemate between the United States and Iran persisted. West Texas Intermediate crude rose 2.09% to US$96.37 a barrel, while Brent crude climbed 2.75% to US$108.23.
Australian Market Outlook
Australian shares are set to open lower, despite record closes on Wall Street, as rising oil prices and geopolitical uncertainty weigh on sentiment.
S&P/ASX 200 futures were down 61 points, or 0.7%, to 8,720.
Locally and globally, the data calendar is light, with no major releases scheduled. In Japan, the Bank of Japan is meeting and is expected to leave interest rates unchanged.
