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U.S. stocks closed higher as investors weighed the prospects of a potential U.S.–Iran ceasefire against President Donald Trump’s escalating threats should the Strait of Hormuz remain closed. Despite Iran rejecting an immediate truce, markets found reassurance in continued indirect negotiations, with investors leaning on historical trends that show equities often rebound during periods of geopolitical conflict.

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00:00U.S. talks advanced on Monday as investors looked for signs of progress toward a U.S.-Iran ceasefire deal and
00:08evaluated President Trump's progressively heated threats and escalation should Iran fail to reopen the Strait of Hormuz.
00:15Iran has rejected the U.S. proposal for an immediate ceasefire, insisting instead on a permanent end to the war.
00:25The rejection followed Trump's increasingly bellicose ultimatums, vowing to rain hell on Iran if the crucial Strait of Hormuz's bottleneck
00:33remains close to all tanker traffic.
00:36Investors drew some reassurance from a report that indicated the U.S.-Iran and a group of regional mediators continue to
00:43discuss terms of potential ceasefire.
00:45Well, stocks have really been oscillating on the potential for a truce with the Iranian conflict tomorrow.
00:52President Trump just came out and addressed the nation and didn't really give a lot of visibility on what to
00:57expect over the next 24 hours.
00:59So you've seen some of those gains be parried back.
01:01But I think importantly, investors are using the playbook of buying the geopolitical dip.
01:06When you go back to 1950, there's been over 20 military conflicts.
01:10And if you had bought the day that that conflict began, the S&P 500 has been positive 3 percent
01:16over the next three months and positive almost 6 percent over the next six months.
01:20And with the S&P 500 down almost 5 percent over the last month, we think that this is probably
01:26a good buying opportunity for investors given the resilience of the U.S. economy.
01:30All three major U.S. indexes advanced slightly, with the S&P 500 and the Nasdaq on track for the
01:37fourth consecutive day of gains.
01:39The S&P 500 gained 29.14 points or 0.44 percent, while the Nasdaq composite gained 117.16 points
01:48or 0.54 percent.
01:50The Dow Jones Industrial Average rose 165.21 points or 0.36 percent.
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