US stock indexes reached 1.5-week highs on Monday as investors weighed potential ceasefire negotiations in Iran against President Trump’s Tuesday deadline to reopen the Strait of Hormuz.

Key Points

• The S&P 500 rose 0.44%, the Dow Jones Industrial Average gained 0.36%, and the Nasdaq 100 climbed 0.61%.
• President Trump set a Tuesday evening deadline for Iran to reopen the Strait of Hormuz, threatening military action if shipping traffic remains blocked.
• The US March ISM services index fell to 54.0, while the prices paid subindex hit a 3.5-year high of 70.7, signaling rising inflationary pressures.
• Energy infrastructure in the UAE, including the Habshan gas facility, halted production following recent Iranian drone and missile attacks.
• Chipmakers and AI-infrastructure stocks led market gains, while Solena Therapeutics surged over 32% on reports of a potential acquisition by Neurocrine.

Why it Matters

Geopolitical instability in the Middle East continues to drive volatility in global energy markets and safe-haven assets like T-notes. Investors remain focused on the potential for supply chain disruptions and inflationary risks as the market balances these threats against recent signs of US labor market strength.