NEW YORK (AP) — Some calm is returning to Wall Street. U.S. stocks are rising in early trading Monday, while oil prices are giving back some of their initial spurts following Israel’s attack on Iranian nuclear and military targets at the end of last week. The S&P 500 rose 0.7%. The Dow Jones Industrial Average rose 240 points, or 0.6%, and the Nasdaq composite added 1%. Israel and Iran are continuing to attack each other, but hopes that the fighting could remain contained helped send the price of a barrel of benchmark U.S. crude down about 1.5%.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
HONG KONG (AP) — Global shares have advanced and oil prices have fallen back slightly as Iran unleashed a fresh wave of missile attacks on Israel early Monday.
Israel’s attack on Iranian nuclear and military targets caused the price of oil to surge more than 7% on Friday since Iran is one of the world’s major producers of oil, though sanctions by Western countries have limited its sales.
A wider war could slow the flow of Iranian oil to its customers and keep prices of crude and gasoline higher for everyone worldwide. But early Monday, those concerns appeared to abate slightly.
U.S. benchmark crude oil lost 73 cents to $72.25 per barrel. Brent crude, the international standard, gave up 73 cents to $73.50 per barrel. They are trading at their highest levels so far this year.
In share trading, the futures for the S&P 500 and the Dow Jones Industrial Average were up 0.5%.
Germany's DAX gained 0.2% to 23,572.39 and the CAC 40 in Paris edged 0.6% higher to 7,728.66. Britain's FTSE 100 inched up 0.3% to 8,876.26.
During Asian trading, Tokyo's Nikkei 225 added 1.3% to 38,311.33, while the Kospi in Seoul gained 1.8% to 2,946.66.
Chinese markets gained after data for May showed stronger consumer spending but slower growth in factory activity and investment. A 6.1% year-on-year jump in retail sales was offset by lower than expected growth in industrial output, which rose 5.8% from a year earlier.
Hong Kong's Hang Seng surged 0.7% to 24,060.99 and the Shanghai Composite Index added 0.4% to 3,388.73.
Australia's S&P/ASX 200 was little changed at 8,548.40.
On Friday, the S&P 500 sank 1.1% and the Dow industrials dropped 1.8%. The Nasdaq composite lost 1.3%.
Companies that use a lot of fuel as part of their business and need their customers feeling confident enough to travel suffered some of the sharpest losses. Cruise operator Carnival dropped 4.9%. United Airlines sank 4.4%, and Norwegian Cruise Line Holdings fell 5%.
They detracted from gains for U.S. oil producers and other companies that could benefit from increased fighting between Israel and Iran.
Exxon Mobil rose 2.2%, and ConocoPhillips gained 2.4% because the leaping price of crude portends bigger profits for them.
Contractors that make weapons and defense equipment also rallied. Lockheed Martin, Northrop Grumman and RTX all rose more than 3%.
The price of gold has climbed as investors search for safer places to park their cash. An ounce of gold added 1.4% on Friday and was holding steady early Monday.
Prices for Treasury bonds will likewise rise when investors are feeling nervous, but Treasury prices fell Friday, which in turn pushed up their yields, in part because of worries that a spike in oil prices could drive inflation higher.
Inflation has remained relatively tame recently, and it’s near the Federal Reserve’s target of 2%, but worries are high that it could be set to accelerate because of President Donald Trump’s tariffs.
A better-than-expected report Friday on sentiment among U.S. consumers also helped drive yields higher. The preliminary report from the University of Michigan said sentiment improved for the first time in six months after Trump put many of his tariffs on pause, while U.S. consumers’ expectations for coming inflation eased.
In currency trading early Monday, the U.S. dollar gained to 144.18 Japanese yen from 144.03 yen. The euro rose to $1.1582 from $1.1533.
Jiang Junzhe, The Associated Press
