Stocks Rise, Oil Tumbles Despite Iran's Strikes On US Bases: What's Driving Markets Monday?

Wall Street showed unexpected resilience Monday as investors looked past a sharp escalation in the Middle East, where Iran fired missiles at U.S. military bases in Qatar and Iraq — just 48 hours after American strikes targeted Iranian nuclear facilities.

According to Axios, citing Israeli officials, Iran launched six ballistic missiles at Al Udeid Air Base in Qatar, the largest U.S. military presence in the Middle East. Another missile was reportedly fired at a U.S. base in Iraq.

Despite the rising geopolitical risks, U.S. equity markets held firm. By midday trading in New York, the Nasdaq 100 rose 0.7% to 21,755, the S&P 500 added 0.4% to 5,990, while the Dow Jones Industrial Average inched 0.3% higher to 42,321. Small caps underperformed, with the Russell 2000 down 0.1% to 2,107.

President Donald Trump is scheduled to meet with his national security team at 1 p.m. ET at the White House to assess the evolving threat landscape.

Monday’s session defied expectations in energy markets. West Texas Intermediate crude fell over 5% to below $70 a barrel, on track for its worst one-day drop since early April and its lowest level in a week.

Gold rose 0.6% to $3,387 per ounce. The day’s standout gainer was the U.S. bond market, with yields falling across major maturities.

The iShares 20+ Year Treasury Bond ETF TLT gained nearly 1%, surging to levels last seen in May 8.

According to Benzinga Pro data:

• The Vanguard S&P 500 ETF VOO rose 0.5% to $550.39.
• The SPDR Dow Jones Industrial Average DIA inched 0.4% up to $423.40.
• The tech-heavy Invesco QQQ Trust Series QQQ rose 0.5% to $529.89.
• The iShares Russell 2000 ETF IWM held steady at $209.28.
• The Consumer Discretionary Select Sector SPDR Fund XLY outperformed, up 1.5%; the Energy Select Sector SPDR Fund XLE lagged, down 2.6%.