US stocks rose early on Monday, September 21, 2026, as oil prices fell and investors hoped that upcoming diplomatic events could change the trajectory of the Middle East war. The Dow Jones Industrial Average was up 0.2 percent at 51,768.81, while the S&P 500 gained 0.6 percent to 7,698.74. The tech-rich Nasdaq Composite Index jumped 1.1 percent to 26,804.02. A dip in US Treasury bond yields also supported equities.
The market is optimistic about a possible meeting between US President Donald Trump and Iranian President Masoud Pezeshkian at the United Nations gathering in New York this week. Briefing.com analyst Patrick O'Hare said that the market is "resting some additional hope" on the possibility of a meeting between the two men. Trump is also scheduled to meet with Chinese President Xi Jinping at a summit later in the week, which could discuss ways to mitigate the impact of the US-Iran war on oil supply.
Lower crude prices and bond yields "seem to be a tailwind for markets, but this also means that if you are realistic about those factors, this could reverse at any point," said Art Hogan of B. Riley Wealth Management. The decline in oil prices and bond yields is supporting equities, but this support could be short-lived. Investors are cautiously optimistic about the upcoming diplomatic events and their potential impact on the market.
The United Nations gathering in New York will bring together world leaders, including Trump and Pezeshkian. Egypt, which currently holds the presidency of the UN General Assembly, is pushing for de-escalation and a Gaza settlement in the UNGA meetings. The Egyptian government is working to find a peaceful solution to the conflict.
The US Treasury chief has announced that Iran airlines will be "shut down" on September 23, 2026, as part of the US sanctions on Iran. This move is likely to further escalate tensions between the US and Iran. However, investors are hoping that the diplomatic efforts will lead to a de-escalation of the conflict.
The Egyptian government has also been involved in discussions with Sudan and the US to end the Sudanese war on the sidelines of the UNGA. The conflict in Sudan has been ongoing for several months, and the Egyptian government is working to find a peaceful solution. The discussions with US officials are aimed at finding a way to end the conflict.
In other news, Egypt has ordered a year-long expulsion for students who film teachers on campus. The Egyptian government has also approved 11 entities for non-banking financial activities, as part of its efforts to develop the financial sector. The industry ministry is also working on a roadmap for Egypt's cement sector.
Key points
- US stocks rise as oil prices retreat amid optimism about diplomatic events that could alter the course of the Middle East war.
- The market is hopeful about a possible meeting between US President Donald Trump and Iranian President Masoud Pezeshkian at the United Nations gathering.
- Egypt is pushing for de-escalation and a Gaza settlement in the UNGA meetings.
