US stock markets opened higher on Monday, driven by a sharp decline in crude oil prices and a broadening risk-on sentiment.
The rally was underpinned by the announcement that the United States and Iran have suspended mutual military attacks, a development that has significantly reduced geopolitical risk premiums in energy markets.
Investors are also weighing the latest Federal Reserve policy decision alongside a slate of key corporate earnings reports.
The drop in oil prices provided immediate relief to cost-sensitive sectors and boosted consumer sentiment expectations.
With the threat of direct conflict between Washington and Tehran temporarily abated, markets are repricing the probability of supply disruptions in the Middle East.
This shift has allowed traders to refocus on domestic economic data and corporate fundamentals rather than geopolitical tail risks.