US stocks close higher; Dow Jones gains 374 pts

The US stock markets closed higher on Monday, following a limited Iranian response to US airstrikes on nuclear facilities over the weekend, raising hopes that the ongoing military conflict in the Middle East could be contained.

The Dow Jones Industrial Average rose by 0.89%, or 374 points, to close at 42,581.

The S&P 500, a broader gauge of the market, gained 0.96%, or 57 points, ending the session at 6,025, while the Nasdaq Composite advanced 0.94%, or 183 points, to finish at 19,630.

In Europe, the Stoxx Europe 600 index fell 0.28% to 535 points, weighed down by weak performances in the banking, chemicals, and insurance sectors.

The FTSE 100 in London dipped 0.19% to 8,758 points, the Germany’s DAX dropped 0.35% to 23,269, and France’s CAC 40 shed 0.69% to 7,537.

In Japan, equities also finished in the red. The Nikkei 225 edged down 0.15% to 38,354, while the broader Topix index declined 0.35% to 2,761.

Brent crude futures for August delivery dropped 7.44%, or $5.73, to settle at $71.28 per barrel.

NYMEX futures for August delivery also declined 7.22%, or $5.33, to $68.51 per barrel.

In contrast, gold futures for August delivery gained 0.27%, or $9.30, to settle at $3,395 per ounce.

The sharp decline in crude benchmarks comes after Iran launched a missile attack on the US Al-Udeid Air Base in Qatar earlier in the evening. The strike reportedly caused no damage or casualties. According to the US Department of Defense, Iran had notified both Washington and Doha prior to the launch, a move seen as a deliberate effort to avoid escalation and eased fears of a potential closure of the strategically vital Strait of Hormuz.