Stock market today: Dow, S&P 500, Nasdaq rise, oil tanks 7% after Iran’s response to US strikes

Tesla stock (TSLA) stock popped 8% on Monday as investors reacted to the EV maker’s robotaxi test, which appeared to kick off smoothly.

Pras Subramanian reports:

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US stocks rose on Monday after Iran’s retaliatory response to US strikes appeared limited, fueling optimism that the conflict could be on a path to deescalation.

The Dow Jones Industrial Average (^DJI) rose more than 350 points, or roughly 0.9%. The S&P 500 (^GSPC) gained 0.9%, and the tech-heavy Nasdaq (^IXIC) rose around 1%, with Tesla stock (TSLA) rising 8%.

Oil prices fell roughly 7% as investors assessed the extent of Iran’s retaliation. Brent crude (BZ=F) futures settled at $71.48 per barrel, while WTI (CL=F) closed at $68.51 per barrel.

Yahoo Finance’s David Hollerith and Jennifer Schonberger report:

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Oil extended declines to 7% on Monday following Iran’s response to US bombings on Iranian nuclear sites, which appeared to spare the energy market.

Brent crude (BZ=F), the international benchmark, fell more than 7% to slip below $72 per barrel. West Texas Intermediate (CL=F) also dropped to $68 per barrel.

The declines came after Iranian state media said it launched missiles toward a US air base in Qatar. The retaliation against the US was seen as measured, given that traders feared a disruption to the oil market was possible.

Meanwhile, US Energy Secretary Chris Wright seemed to downplay the possibility that Iran would close the Strait of Hormuz, a critical chokepoint through which roughly 20% of the world’s oil flows.

“There is some risk of that, but I don’t think the risk is huge,” Wright said during an interview with CNBC.

Stocks are taking their cues from the oil market right now.

Brent crude (BZ=F), the international benchmark, fell about 6% to slip below $72.50 a barrel. West Texas Intermediate (CL=F) futures also slid about 6% to fall about $70 off reports that Iran launched missiles toward US air bases in Qatar and Iraq in retaliation over US strikes against Iranian nuclear sites.

The instant investor read through appeared to be positive since the retaliatory attacks didn’t threaten the outlook for oil supply. Stocks rose as oil fell. The S&P 500 (^GSPC) added 0.7%, while the tech-heavy Nasdaq Composite (^IXIC) rose 0.8% and the Dow Jones Industrial Average (^DJI) about 0.7%, or just under 300 points.

Oil prices fell on Monday after Iran’s retaliatory moves following US strikes on the country’s nuclear sites appeared to spare any supply of energy products.

West Texas Intermediate fell 4%, while Brent crude also dropped more than 4% after Iranian state media said it launched missiles against US air bases in Qatar.

Prior to the missile attacks, Wall Street weighed the possibility of an energy supply shock if Iran were to close the Strait of Hormuz, a critical chokepoint through which roughly 20% of the world’s oil products flow.

Yahoo Finance’s Josh Schafer reports:

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Google’s artificial intelligence model is set to drive $4.2 billion in subscription revenue within its Google Cloud segment in 2025, according to an analysis from Bank of America on Monday.

That includes $3.1 billion in revenue from subscribers to Google’s AI plans with its Google One service, Bank of America’s Justin Post estimates.

Post also expects that the integration of Google’s Gemini AI features within its Workspace service will drive $1.1 billion of the $7.7 billion in revenue he projects for that segment in 2025.

“We believe Google has moved beyond the catch-up phase in the LLM [large language model] race, with Gemini now comparing favorably with leading peer models from OpenAI, Anthropic, xAI, and Meta,” Post wrote, saying that AI is a “major growth driver for Google Cloud.”

But, Post added, “While the revenue opportunity is growing with subscriptions, Google will likely see a significant deterioration of market share relative to its ~90% share of search revenues.”

At the same time, Alphabet is set to spend $75 billion on AI investments in 2025.

“If revenue growth doesn’t keep pace with rising Capex, higher spending could weigh on free cash flow and margin projections,” Post wrote.

He holds a Buy rating and $200 price target on Alphabet (GOOGL, GOOG) shares.

Yahoo Finance’s Anjalee Khemlani reports:

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Yahoo Finance’s Claire Boston reports:

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Yahoo Finance’s Jennifer Schonberger reports:

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President Trump called for lower energy prices as he posted on social media on Monday: “EVERYONE, KEEP OIL PRICES DOWN. I’M WATCHING! YOU’RE PLAYING RIGHT INTO THE HANDS OF THE ENEMY. DON’T DO IT!”

He also wrote,”To The Department of Energy: DRILL, BABY, DRILL!!! And I mean NOW!!!”

Oil futures fell more than 1% on Monday after spiking more than 5% on Sunday night as traders assessed whether Iran would close off the Strait of Hormuz, a critical chokepoint through which roughly 20% of the world’s oil products flow.

Strategy (MSTR) stock fell as much as 3% on Monday morning after the Michael Saylor-helmed firm announced another bitcoin purchase.

The software firm turned crypto giant said in a filing with the US Securities and Exchange Commission that it bought $26 million worth of bitcoin between June 16 and June 22.

As of Monday’s filing, Strategy has spent nearly $42 billion to acquire over 592,000 bitcoins since 2020. Over that time frame, the stock has soared more than 2,800% relative to the S&P 500’s 78% gain.

Strategy shares pared initial losses shortly after the market opened and are down less than 1%.

At the same time, Strategy is facing two new lawsuits from investors — one filed in May, the second last week — over its bitcoin strategy. The lawsuits allege that the company misled investors about how its bitcoin strategy would affect its profits and its stock price, given the cryptocurrency’s volatility.

Tesla stock (TSLA) rose 5% in early trading Monday after its robotaxi launch kicked off on Sunday in Austin, Texas.

Yahoo Finance’s Pras Subramanian reports that several users on X claimed they were able to hail and ride some of the 10-20 Tesla Model Y vehicles available, which featured “Robotaxi” graphics on the sides of the cars.

Tesla CEO Elon Musk had announced the rollout on X earlier in the day, saying that customers will pay a flat $4.20 fee. Only select invited Tesla users were invited to test the robotaxi service, as it begins to scale to take on industry leader Waymo (GOOG, GOOGL).

Wedbush analyst and Tesla bull Dan Ives wrote in a note: “We took two approximately 15 minute rides around Austin and the key takeaways are that it was a comfortable, safe, and personalized experience.”

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US stocks wavered on Monday as oil trimmed gains and supply worries eased over Iran’s possible retaliatory move following US strikes on the country’s nuclear facilities.

The Dow Jones Industrial Average (^DJI) fell slightly while the S&P 500 (^GSPC) was little changed. The tech-heavy Nasdaq (^IXIC) fell slightly.

OIl futures were little changed after spiking more than 5% on Sunday night as traders assessed whether Iran would close off the Strait of Hormuz, a critical chokepoint through which roughly 20% of the world’s oil products flow.

Trump Media & Technology (DJT) stock rose 4% before the market opened Monday morning after the company announced a $400 million stock buyback.

Shares of the company — in which President Trump is the majority stakeholder — have fallen roughly 48% in 2025.

Stock buybacks, a common practice that faces a fair share of criticism, reduce the amount of a company’s common shares in the public market and, hence, boost its earnings per share even if its profits don’t rise.

Trump Media said the buybacks “would be funded separately from, and would not alter, Trump Media’s previously announced Bitcoin treasury strategy.” The company is aiming to create a bitcoin treasury to hold the cryptocurrency on its balance sheet and announced a $2.5 billion private funding round to fund the initiative in May.

Trump Media is part of a wave of firms following in the footsteps of crypto tycoon Michael Saylor’s company, Strategy (MSTR), which has seen its stock soar by buying up bitcoin.

Wedbush analyst Dan Ives wrote in a note to clients on Monday that he expects cybersecurity stocks to be in focus following the US bombing of three Iranian nuclear facilities over the weekend.

Ives wrote that “cyber security stocks in particular [are] set to be front and center this week as investors anticipate some cyber attacks from Iran could be on the horizon as retaliation.”

“On the cyber security sector, our favorite names remain Palo Alto (PANW), Cyberark (CYBR), Crowdstrike (CRWD), Zscaler (ZS), and Checkpoint (CHKP).”

The stocks traded roughly flat premarket on Monday.

Defense stocks were modestly higher Monday during premarket trading after the US bombed three Iranian nuclear facilities over the weekend.

Palantir (PLTR), Lockheed Martin (LMT), and Northrop Grumman (NOC) rose less than 1%, while RTX (RTX) climbed 1.3%.

Palantir supplies AI-fueled defense tech to Israel, which has prompted blowback from former employees and protesters. The other three companies supply weapons to Israel through their contracts with the US government.

The defense stocks had jumped immediately after Israel’s first airstrikes on Iran on June 12, but only RTX has sustained notable gains of 4% since those strikes. Lockheed Martin is up 0.3% over that time frame, while Northrop Grumman is roughly flat (up 0.1%). Palantir has risen 1.6%.

Jefferies (JEF) analyst Mohit Kumar wrote Monday, “Market is now waiting to see how Iran reacts …​​However, we are not fully convinced around the market’s sanguine reaction.”

“Defence has been one area that we have been bullish on, and we continue to maintain our overweight exposure,” he added. “NATO countries have moved to increase defense spending with a long term goal of taking to 5% of GDP. We are typically skeptical of long term goals as goal posts do change, but it is also clear to us that defense spending needs to increase globally and not just for NATO countries.”

Energy stocks rose alongside rising oil prices in premarket trading on Monday while overall stock futures wobbled. Those with oil production in the US and outside the Middle East caught a bid as investors weighed the possibility of further disruption to the oil supply following the US strikes on Iran.

The Energy Select Sector SPDR Fund (XLE) advanced 0.6% and has risen 6% in the past month.

Here’s a look at how trending energy stocks are trading this morning:

View more trending tickers here.