Dow falls 150 points, S&P 500 and Nasdaq rise as Iran keeps talks alive

U.S. stock markets ended mixed on Monday, with the Dow Jones Industrial Average falling about 150 points while the S&P 500 and Nasdaq Composite posted gains. The divergence came as geopolitical tensions with Iran showed signs of de-escalation, with Iran indicating it would keep diplomatic channels open despite deadly weekend hostilities and fresh U.S. military strikes. Oil prices eased on the news, providing relief to markets that had been on edge over potential supply disruptions.

The Dow's decline was driven by losses in industrial and energy stocks, while the tech-heavy Nasdaq benefited from a rotation into growth shares ahead of a busy week of Big Tech earnings. The S&P 500 managed a slight gain, reflecting the mixed sentiment. Investors are closely watching corporate earnings reports for clues on the health of the economy and the impact of higher interest rates.

The market's focus on earnings comes as oil prices remain volatile. Crude futures swung earlier in the session before settling lower after Iran's conciliatory signals. The weekend saw deadly attacks and U.S. retaliatory strikes, but Iran's willingness to keep talks alive helped calm fears of a broader conflict. Analysts noted that choppy oil markets are keeping investors on edge, with energy costs a key factor for inflation and corporate margins.

Looking ahead, the earnings season is expected to be the next major catalyst for markets. Major technology companies are set to report results this week, and their performance could determine whether the recent rally in growth stocks continues. Meanwhile, geopolitical developments will remain in focus, with any escalation in the Middle East likely to reignite oil price spikes and market volatility.