Wall Street Gains Amid Tensions over Strait of Hormuz

Wall Street saw a modest rise on Monday, driven by hopes for progress in U.S.-Iran ceasefire negotiations even as tensions heightened with President Trump’s stern warnings to Iran. The prospect of reopening the Strait of Hormuz remains a key concern for investors.

Despite Iran's refusal of a U.S. ceasefire proposal and Trump's aggressive rhetoric, reports suggested ongoing discussions involving regional mediators. This provided some comfort to investors, pushing the S&P 500 and Nasdaq towards a fourth day of upward movement.

Market activities remained cautious amid persistent volatility. Rising crude prices raised inflation fears, and recent economic data pointed to contraction in the U.S. services sector. Nevertheless, key indices posted gains, albeit amidst thin trading volumes due to holiday closures in international markets.