Stocks Climb Amid Geopolitical Tensions and Central Bank Anticipation

U.S. stock indexes rose on Monday as oil prices fell from last week's highs, despite continued geopolitical tensions between Israel and Iran. The conflict has not impacted crude production and exports, offering relief to investors ahead of a week filled with pivotal central bank meetings.

As Group of Seven leaders convened for annual talks in Canada, markets responded positively to reports that Iran was seeking to de-escalate its conflict with Israel. This follows a turbulent Friday session where oil surged by 7%, causing Wall Street indexes to drop by over 1%. Investors are cautiously optimistic, anticipating two Federal Reserve rate cuts by December.

Meanwhile, U.S. Treasury yields decreased slightly, alongside a global uptick in stocks. European and Gulf markets rebounded, while rising retail sales and industrial output boosted Chinese blue chips. Looking ahead, upcoming central bank meetings in Norway, Sweden, and Japan are in focus as investors remain attentive to shifts in monetary policy.

(With inputs from agencies.)