S&P 500 erases Iran war losses as market sentiment shifts toward diplomacy. The index staged a significant comeback Monday, wiping out all declines since geopolitical tensions escalated. Vice President JD Vance signaled potential progress in negotiations, stating the U.S. has put substantial proposals on the table and the ball now rests with Iran. Oil prices retreated on these diplomatic hopes. Market analysts suggest investors are shifting focus from geopolitical risks to interest rate dynamics, which remain a primary driver of stock valuations. Jim Cramer noted that historically low rates continue to support equities despite escalating tensions. Meanwhile, China's export growth slowed in March due to supply chain disruptions from Middle East conflict, while LVMH missed quarterly sales expectations, signaling broader economic headwinds in key markets.
