U.S. Stocks Rise as Traders Look Past G7 Gridlock and Middle East Tensions

U.S. equity markets ended Monday on a strong note, with major indexes advancing despite simmering geopolitical risks and the lack of concrete progress out of the G7 summit in Canada.

The Dow Jones Industrial Average added 317.30 points, or 0.75%, to close at 42,515.10. The S&P 500 climbed 56.14 points, or 0.94%, to 6,033.11. The Nasdaq Composite rose 294.39 points, or 1.52%, finishing at 19,701.20. The Russell 2000 also gained 0.89%, closing at 210.75.

The upbeat close came as investors shrugged off intensifying conflict in the Middle East and an underwhelming opening to the G7 leaders summit in Alberta, which produced strong rhetoric but little in the way of actionable policy.

Markets have been closely monitoring developments between Israel and Iran, where violence escalated over the weekend. The Israeli military conducted airstrikes targeting Iran’s missile infrastructure early Monday morning, while Iran vowed a “severe punishment” in response. Despite the tensions, crude oil prices retreated. West Texas Intermediate for July delivery fell $1.68, or 2.30%, to settle at $71.30 a barrel, reflecting investor expectations that the conflict may not immediately disrupt energy supply lines.

At the G7 summit, President Donald Trump seized the spotlight with provocative remarks on global diplomacy. He called Russia’s 2014 removal from the G7 a “mistake” and suggested the war in Ukraine might have been avoided had Moscow remained part of the group. While not advocating immediate reinstatement, the comments added to the geopolitical complexity of the summit.

Trump also commented on the Israel-Iran conflict, saying Iran “is not winning this war” and urging Tehran to return to talks “before it’s too late.” He declined to offer specifics on potential U.S. military involvement and, according to reports from CBS and Reuters, does not intend to sign the G7’s draft statement on the conflict, which reaffirms Israel’s right to self-defense and calls for de-escalation.

On trade, Trump and UK Prime Minister Keir Starmer signaled they are nearing final terms on a bilateral agreement encompassing beef, steel, autos, and ethanol. While this deal remains pending, it was the only tangible economic development mentioned by G7 leaders so far.

Despite the flurry of headlines, no final G7 communiqué had been issued by Monday's close, and investor sentiment appeared driven more by technical resilience and risk appetite than by international policy clarity.

With no major economic data or corporate earnings releases on Monday, the focus remains firmly on geopolitical headlines. Traders are expected to keep a close eye on developments from the G7 summit and any further military escalation in the Middle East as the week unfolds.

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