The S&P 500 Index
The broader market index added over 0.1% to settle at 7,173.91 for the first time. Meanwhile, the Dow Jones Industrial Average
Over the weekend, President Donald Trump stated that plans to send Steve Witkoff and Jared Kushner to Pakistan to continue peace talks with Iran were canceled, arguing that "too much time [is] wasted on traveling," in a post on Truth Social.
"Nobody knows who is in charge," in Iran, the president continued, adding that "we have all the cards; they have none! If they want to talk, all they have to do is call!!!"
While equities seemed to remain unaffected by stalling ceasefire talks, crude oil futures rose higher on Monday, with West Texas Intermediate and international benchmark Brent futures topping $96 and $100 per barrel, respectively.
Analysts at Goldman Sachs updated their oil price forecast through the end of the year on Sunday, expecting exports to remain influx well into June and for production to recover on a longer timeline. The firm now expects Brent and West Texas Intermediate prices to average $90 and $83 per barrel, respectively, in the fourth quarter -- compared to its previous respective forecasts of $80 and $75.
"The economic risks are larger than our crude base case alone suggests because of the net upside risks to oil prices, unusually high refined product prices, products shortage risks, and the unprecedented scale of the shock," analyst Daan Struyven wrote in a note to clients on Sunday.
The Iran war is also beginning to show material impact on air travel spending, Bank of America researchers wrote in a note on Monday, highlighting that passenger levels have fallen below 2024 and 2025 levels "in recent days."
"Since air tickets tend to be purchased on average six weeks before travel, we think the slowdown is likely due to the impact of the Iran war on not only airfares but also confidence," the researchers wrote, adding that "the implication is that discretionary services spending will probably be soft in April, after a strong March."
In corporate news, United Airlines
Kirby said in a statement he was hoping to pitch his "big, bold vision" for American Airlines, but "they declined to engage and instead responded by publicly closing the door."
"And without a willing partner, something this big simply can't get done," Kirby added.
Looking ahead, the majority of traders expect the Federal Reserve to hold interest rates at their current range at the conclusion of its two-day policy meeting on Wednesday, as the Iran war continues to complicate policymakers' inflation outlooks.
