US stocks end mostly higher as S&P 500, Nasdaq hit fresh records

US stocks closed mostly higher Monday, with the S&P 500 and Nasdaq Composite reaching fresh record levels, though gains were capped by rising oil prices and uncertainty over stalled US-Iran diplomacy.

The S&P 500 rose 0.12%, or 8.83 points to a record high of 7,173.91 points, while the tech-heavy Nasdaq Composite also gained 0.20%, or 50.50 points to an all-time high of 24,887.10.

The Dow Jones Industrial Average, however, slipped 62.92 points, or 0.13%, to end the day at 49,167.79.

The Volatility Index (VIX), often referred to as the market’s “fear index,” declined 3.69% to 18.02.

US President Donald Trump canceled plans Saturday to send special envoy Steve Witkoff and Jared Kushner to Pakistan for Iran-related ceasefire talks, saying negotiations could instead be held by phone.

In a Truth Social post, Trump said traveling for talks would waste time and effort, adding that Tehran could call Washington if it wanted to negotiate.

Iranian Foreign Ministry spokesperson Esmaeil Baqaei said no meeting between Iran and the US was currently scheduled.

Reports also suggested that Iran had submitted a new proposal to the US to reopen the Strait of Hormuz and end the war, while postponing nuclear negotiations to a later stage.

Oil prices moved higher as Washington and Tehran remained in a stalemate over efforts to ease tensions and reopen the Strait of Hormuz.

US benchmark West Texas Intermediate crude futures rose 2% to above $96 per barrel, while international benchmark Brent crude futures advanced 2% to more than $108 per barrel.

Geopolitical developments, along with the intensifying earnings season, are in the focus of investors, with the earnings reports expected this week from major technology companies, particularly Amazon, Meta, Alphabet, Microsoft, and Apple, being closely watched.

Furthermore, investors' attention is focused on the decisions to be made at the Federal Open Market Committee (FOMC) meeting on Wednesday, with the bank widely expected to keep the policy interest rate unchanged this week.

This meeting is expected to be Jerome Powell's last as chair of the Federal Reserve before his official term ends on May 15, and his statements following the meeting will be closely monitored.

European markets

European stocks, however, closed the day mostly lower, with the pan-European Stoxx 600 index falling 0.30% to close at 608.84 points.

France’s CAC 40 lost 0.19% to 8,141.92, the UK’s FTSE 100 declined 0.56% to 10,321.09, and Germany’s DAX 40 dropped 0.19% to 24,083.53.

However, Italy’s FTSE MIB 30 index rose 0.04% to end the day at 47,673.91, and Spain's IBEX 35 added 0.01% to 17,692.9.