U.S. stocks climbed Monday as investors responded to signs of easing tensions between Washington and Tehran and prepared for a busy week of earnings and economic data.
The Dow Jones Industrial Average gained about 1.2%, while the S&P 500 and Nasdaq Composite each rose roughly 1%, according to Monday market data.
Nine of the 11 S&P 500 sectors advanced, led by communication services, while energy stocks lagged as oil prices fell on hopes for progress in U.S.-Iran discussions. Reuters reported that Brent crude dropped more than 5% as investors assessed the possibility of renewed diplomacy.
Treasury yields also moved lower. The two-year yield slipped 1 basis point to 4.25%, while the 10-year yield declined 2 basis points to 4.69%. The 30-year yield fell 3 basis points to 5.23%.
Economic data offered a mixed signal. The final U.S. manufacturing PMI for July came in at 53.9, slightly above the preliminary 53.8 reading, while the report pointed to softer production and sales growth. Investors are also awaiting the latest employment data and another round of corporate earnings this week.