Wall Street opens higher after oil prices drop on U.S. pause in attacks against Iran

U.S. stock markets opened on an upward trajectory Monday, with the Dow Jones Industrial Average climbing 1.18%. This positive start was largely driven by a more than 5% decrease in oil prices, which followed the United States' decision to pause attacks against Iran over the weekend. The easing of geopolitical tensions provided a significant boost to market sentiment.

At the opening bell, the Dow Jones added 611 points to reach 52,558, while the S&P 500 advanced 0.8% to 7,471, and the tech-heavy Nasdaq Composite rose 0.89% to 25,196. West Texas Intermediate (WTI) crude futures for August delivery fell below $85 a barrel, trading down $5.28 from the previous close. U.S. Ambassador to the UN Mike Waltz indicated on Sunday that Washington is allowing "some breathing room" for diplomatic efforts between the U.S. and Iran. The U.S. Central Command has also not announced new attacks against Iran for three consecutive days, ending a nearly two-week period of hostilities.

In corporate news, the technology sector showed resilience, with several major companies rebounding after last week's losses. Microsoft shares were up 2.55%, Meta gained 1.67%, Amazon increased by 1.19%, and Apple saw a 0.59% rise. These companies are set to release their quarterly earnings reports this week. Additionally, the Federal Reserve is scheduled to convene to decide on interest rates. However, other prominent tech firms like Nvidia and AMD started the week in negative territory, declining 0.43% and 0.61%, respectively.

In other markets, gold prices edged up 0.37% to $4,085 per ounce, and silver rose 0.3% to $59.08. Yields on 10-year U.S. Treasury notes fell 3.4 basis points to 4.653%, and 30-year Treasury yields decreased by 3.2 basis points to 5.131%.

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Washington is giving "some breathing room" to diplomatic efforts between the two countries.