Stocks staged a sharp rebound on Monday, clawing back earlier losses as oil prices tumbled after remarks from Donald Trump suggesting the conflict with Iran could wind down sooner than expected.

The major indexes finished solidly higher after turning green in afternoon trading. The tech-heavy Nasdaq led the gains, rising 1.4% to 22,696, while the S&P 500 added 0.8% to close at 6,796. The Dow Jones Industrial Average climbed 239 points, or 0.5%, to end at 47,741, and the Russell 2000 gained 1.1% to 2,554.

Markets had been under pressure earlier in the session as oil prices surged above $100 a barrel amid escalating tensions in the Middle East. But sentiment shifted quickly after Trump signaled the situation could de-escalate sooner than expected.

Speaking about the conflict with Iran, Trump said the US was “very far” ahead of its projected four- to five-week timeline, fueling hopes that the war could soon come to an end.

Those comments triggered a swift pullback in crude prices, easing fears about a prolonged supply shock and renewed inflation pressures—two factors that had been weighing heavily on investors at the start of the day.

The reversal in oil helped lift risk appetite across equities, with technology and small-cap stocks leading the market’s comeback into the close.

Investors are now turning their attention to earnings after the bell from Hewlett Packard Enterprise, which could provide fresh insight into demand trends for enterprise IT spending.

1911 Gold Corp (TSX-V:AUMB, OTCQB:AUMBF, FRA:2KY) said it has drawn the first $15 million tranche of a $30 million secured credit facility with Auramet International to fund development activities at the True North Gold Project in Manitoba.

Bit Digital Inc (NASDAQ:BTBT) maintained an ‘Outperform’ rating and $5.50 price target from Noble Capital Markets, which cited the company’s strategic positioning in Ethereum following the release of its February treasury and staking data.

Montero Mining and Exploration Ltd (TSX-V:MON, OTC:MXTRF) completed a data compilation and exploration program using advanced analytics and machine learning to refine geological understanding at its Potrero gold project in Chile’s Maricunga Belt.

Protalix Biotherapeutics Inc (NYSE-A:PLX, FRA:PBDA) said the European Commission approved a new dosing schedule for its Fabry disease therapy pegunigalsidase alfa, triggering a $25 million milestone payment from partner Chiesi Global Rare Diseases.

Lisata Therapeutics Inc (NASDAQ:LSTA, FRA:8NE) agreed to be acquired by privately held Kuva Labs in a deal offering $5 per share in cash plus a contingent value right to shareholders.

Northstar Gold Corp. (CSE:NSG) closed the first tranche of a non-brokered private placement, raising $558,000 through the issuance of units priced at $0.06.

G Mining Ventures Corp (TSX:GMIN, OTCQX:GMINF, FRA:W97) said its largest shareholder La Mancha Investments will invest about C$427 million to maintain its 19.9% ownership stake in the company.

C3 Metals Inc (TSX-V:CCCM, OTC:CUAUF) reported geochronology results showing mineralization at its Khaleesi copper project in Peru formed about 35.8 million years ago, aligning with major deposits in the Andahuaylas-Yauri belt.

Medicus Pharma (NASDAQ:MDCX) said updated data from a Phase 2 trial of its SkinJect microneedle therapy showed 73% clinical clearance in treating Basal cell carcinoma.

Novo Nordisk / Hims & Hers Health: Novo Nordisk and Hims & Hers announced a partnership to offer the weight-loss drugs Wegovy and Ozempic through Hims & Hers’ telehealth platform, ending a legal dispute and expanding access to FDA-approved GLP-1 treatments.

Protalix Biotherapeutics: The European Commission approved a new once-every-four-weeks dosing regimen for Pegunigalsidase alfa to treat Fabry disease, triggering a $25 million milestone payment from partner Chiesi Global Rare Diseases.

Lisata Therapeutics: Lisata Therapeutics agreed to be acquired by Kuva Labs in a deal offering $5 per share in cash plus a contingent value right for each share.

Live Nation Entertainment: The U.S. Justice Department reportedly settled an antitrust lawsuit against Live Nation and its subsidiary Ticketmaster, sending Live Nation shares higher in early trading.

“Stocks have recouped their overnight losses, but while oil is full of sound and fury, the decline in equities is likely to be more of a slow burn," IG's Chris Beauchamp noted.

"US stocks had struggled for weeks before the conflict broke out, but the jump in oil prices means that there is even less reason to hold onto expensive stocks for the time being, particularly when the inflationary outlook is poised to take a material turn for the worse.”

Crude oil has become the market’s dominant driver after US benchmark West Texas Intermediate crude posted its biggest weekly gain since the contract’s launch in 1983. The rally has raised fresh concerns about inflation and could complicate the Federal Reserve’s policy outlook if energy prices remain elevated.

Market nerves were already evident heading into Monday trading. “The spike in the oil price is dominating global financial markets,” Kathleen Brooks, research director at XTB said, adding that attacks on energy infrastructure in the Middle East have intensified fears of a deeper supply shock.

Against this tense backdrop, the week’s key economic event will be Wednesday’s February consumer price index report. Economists expect both headline and core inflation to rise at an annual rate of about 2.5%, but the data will likely be viewed through the lens of the recent energy price surge.

The report arrives just days before the Federal Reserve’s March policy meeting, though policymakers are currently in their blackout period ahead of the gathering.

After an hour of trading Wall Street has seen travel and leisure stocks lead the declines on Monday.

The Dow Jones has lost 718 points or 1.5% to drop to 46,782, while the S&P 500 has fallen 1.2% and the Nasdaq 0.95%.

Travel and leisure stocks fell the furthest on the S&P as investors reassessed demand risks and rising fuel prices in light of the ongoing fighting in the Middle East, with cruise operators and airlines among the worst performers.

Carnival, Norwegian Cruise Line and Royal Caribbean all fell alongside United Airlines and Delta Air Lines, while Expedia and MGM Resorts also retreated amid concerns over higher fuel costs and weakening travel sentiment.

The Dow's biggest fallers were Cisco Systems, down almost 4%, Boeing, 3M, Home Depot, Nike, JPMorgan Chase and Disney.

US stock futures pointed to more selling on Wall Street to start the week, after oil prices surged above $100 and changed the outlook on inflation and interest rates.

Dow Jones futures were down 1%, with the S&P 500 off 0.9% and the Nasdaq set to fall 0.9%, as energy prices were sent rocketing overnight due top escalating Middle East hostilities.

Front-month WTI jumped as much as 29% from Friday's close to approach a high of $116 a barrel, what would be its biggest ever one-day increase and the highest prices since 2022, before pulling back to trade around $103 per barrel.

Due to shipping lanes being effectively blocked, Iraq has been forced to shut-in a substantial amount of production, with further curbs likely and Kuwait also reportedly trimming output.

Iraq is now producing a quarter of the oil it was producing before the US and Israeli air strikes on Iran, roughly 3% of global oil supply lost in a single event.

Prices eased after reports that Saudi Arabia had offered to release around 4.6 million barrels through a pipeline to the Red Sea to ease supply concerns, while G7 finance ministers are also due to talk this morning about a release of strategic reserves.

Analysts warned that until the Strait of Hormuz, through which roughly a fifth of global oil supply passes, reopens, energy prices will stay elevated and volatile, feeding fears of a fresh inflation surge at a time when US core PCE is already running at 3%, well above the Federal Reserve's 2% target.

Markets had already endured a difficult week, with the Dow down 2.6% and the S&P 500 off 1.6% last week, and the mood was darkened further by last week's weak non-farm payrolls report, leaving the Fed facing its familiar dilemma of whether to prioritise inflation or employment.

"The challenge facing markets this morning is shaped as much by geopolitics as by economics, and a great deal turns on how the United States ultimately chooses to define ‘victory’ in the Gulf," says market analyst John Wyn Evans at Rathbones.

"The shifting and sometimes contradictory list of objectives offered by Washington gives it latitude to declare success at a moment of its choosing – but that flexibility does little to disguise the fact that the regional equilibrium has shifted meaningfully."

The conflict seems to have become a wider confrontation with more severe and less predictable consequences, he added.

"The response from Iran has been the critical miscalculation. Previous cycles of tension were characterised by heavily signposted missile launches and attacks designed to allow Tehran’s leadership to claim resolve without provoking a broader escalation.

"This time, the strategy looks markedly different. Strikes have hit not only US or Israeli targets but also civilian sites in other Gulf states, commercial vessels in the Strait of Hormuz and vital infrastructure including oil‑related facilities and desalination plants.

"Markets are reacting accordingly. When conflicts are counted in days, equilibrium is typically restored quickly. When they stretch into weeks, and when they involve essential commodities, the odds deteriorate."