Wall Street rebounds as geopolitical tensions ease. Stocks staged a dramatic late-session recovery Monday after President Trump signaled the U.S.-Israeli conflict with Iran could conclude ahead of schedule. The S&P 500, Nasdaq, and Dow all finished higher despite early losses driven by surging oil prices. Crude initially spiked to mid-2022 highs due to shipping disruptions, raising inflation concerns. However, prices retreated after reports emerged that the Trump administration may ease Russian oil sanctions. Market volatility persists as investors weigh conflicting signals between geopolitical risks and economic data. Friday's disappointing employment report compounds concerns about potential stagflation, leaving the Federal Reserve facing difficult policy choices between managing inflation and supporting employment.
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