US stocks near record high, oil falls as Trump claims Iran talks under way

The S&P 500 climbed 1.5 percent on Monday, leaving the benchmark index just shy of its closing record of 7,620.90 set on June 2.

The tech-focused Nasdaq Composite jumped 2.1 percent, closing 4.3 percent below its all-time peak of 27,093.90, also set on June 2.

The narrower Dow Jones Industrial Average, which tracks 30 blue-chip companies, rose 1.3 percent to hit a record high of 53,178.41.

“Magnificent Seven” tech giants were at the forefront of the rally, with all apart from Apple making substantial gains.

Chip giant Nvidia rose 2.9 percent, while electric vehicle maker Tesla jumped 3.5 percent.

The broad-based rally continued in after-hours trading, with futures tied to the S&P 500 rising more than 0.2 percent.

“I am extremely surprised by the magnitude of the rally,” Melissa Brown, managing director of Investment Decision Research at SimCorp, told Al Jazeera.

“It comes against the backdrop of relatively negative sentiment, and without a real fundamental reason to support it.”

Brent crude, the primary international benchmark for oil prices, fell about 5 percent on Monday, before climbing as markets opened in Asia on Tuesday.

Brent futures were hovering at about $85 per barrel as of 04:00 GMT, up more than 1.3 percent from Monday’s close.

Asian stock markets fell on Tuesday after seeing gains in early morning trading.

South Korea’s Kospi, which has been on a roller coaster in 2026 amid furious demand for memory chips used in artificial intelligence, was down 1 percent as of 04:00 GMT.

Japan’s benchmark Nikkei 225 fell 0.7 percent, while Hong Kong’s Hang Seng Index dipped 0.5 percent.

The latest market moves came as Washington and Tehran offered conflicting accounts of the communications taking place between the sides.

US President Donald Trump said on Monday that talks with Iran were under way and that he wanted to give Tehran “every last chance” to sign a deal before facing renewed strikes.

Trump’s comments came a day after he announced that he had called off plans to launch the “biggest attack since World War II” following discussions with Gulf leaders.

Iran’s Ministry of Foreign Affairs spokesman, Esmaeil Baghaei, ⁠earlier on Monday told a news conference that Tehran was not engaged in talks with Washington and that it had no meetings with US officials planned.

Baghaei ⁠said Iranian officials were currently engaged in negotiations with Oman on allowing ships to transit the Strait of Hormuz and that issues between the US and Iran would need to be addressed in the “next stages”.