U.S. stock markets trimmed their losses Monday after President Trump said a previously announced military attack on Iran, set to begin Tuesday, is now on hold. The Dow Jones, S&P 500, and Nasdaq all ended off their worst levels of the day, reflecting a partial rebound from inflation-driven selling pressure earlier in the session.
The reprieve came as investors wrestled with persistent inflation worries that had weighed on sentiment throughout the morning. The market's ability to stabilize suggests traders are parsing geopolitical headlines alongside economic data, though the overall tone remains cautious.
All attention now turns to Nvidia, which reports quarterly earnings on Wednesday. The semiconductor giant's results are widely seen as a bellwether for the AI-driven tech sector and could set the direction for broader markets in the coming days.
The Iran development injects a fresh layer of uncertainty into an already jittery market. Analysts caution that any escalation could reignite volatility, particularly if energy prices spike, though the immediate pause appears to have provided some breathing room.
Some market participants argue that inflation fears may be overblown and that the pullback presents a buying opportunity. However, the lack of clarity on both monetary policy and geopolitical risk keeps many on the sidelines.