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US Equity Indexes Off Session Lows as Trump Postpones Iran Attack

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US equity indexes closed mixed, albeit off session lows, as President Donald Trump agreed to delay a "large-scale" attack on Iran on Tuesday at the request of leaders from the Middle East negotiating with Tehran.

The Nasdaq Composite fell 0.5% to 26,090.73, with the S&P 500 down less than 0.1% to 7,403.05 on Monday. The Dow Jones Industrial Average rose 0.3% to 49,686.12. Technology and industrials led decliners at the close. Energy, financials, and consumer staples were among the top gainers.

President Trump will "hold off" on a Tuesday plan to attack Iran, citing a request from Qatar, Saudi Arabia, and the United Arab Emirates as he said negotiations to end the war grow more "serious," CNN reported Monday. "This Deal will include, importantly, NO NUCLEAR WEAPONS FOR IRAN," Trump was cited as saying.

Trump also instructed his leadership "to be prepared to go forward with a full, large-scale assault of Iran, on a moment's notice" if a deal isn't reached, according to the president's Truth Social post.

Meanwhile, Iran offered an updated peace proposal, which the White House adjudged lacking meaningful improvement over the previous offer, rendering the latest version insufficient to reach a deal to end the war, a senior US official and a source briefed on the issue told Axios.

Separately, the US has agreed to release a quarter of Iran's frozen funds - totaling tens of billions of dollars - held in foreign banks, a senior Iranian source told Reuters. Washington has shown more flexibility in allowing Iran to continue some peaceful nuclear activity under the supervision of the International Atomic Energy Agency, the source told the news agency.

West Texas Intermediate crude oil futures climbed 1% to $106.48, and Brent crude futures fell 0.4% to $108.83.

US Treasury yields slipped after trading mixed earlier in the session. The 10-year was little changed at 4.59%, the highest in about a year. The 30-year rate was steady at 5.13%, the strongest level since 2007.

In precious metals, gold futures rose 0.2% to $4,568.8, and silver futures climbed 0.5% to $77.97, clawing back all declines from earlier in the session.

In economic news, the National Association of Home Builders' monthly housing market index rose to a reading of 37 in May from 34 in April, compared with expectations for a 34 print in a survey compiled by Bloomberg. The index was above the 34 print reported a year earlier.

The New York Federal Reserve's services index improved to minus 5.8 in May from minus 14.0 in April, the highest level since January 2025. The index is the first services sector reading for May and suggests a slower contraction.

In company news, NextEra Energy (NEE) and Dominion Energy (D) agreed to merge in an all-stock deal to create the world's largest regulated electric utility. Shares of Dominion jumped 9.4%, the second-biggest gainer on the S&P 500.

Regeneron Pharmaceuticals' (REGN) miss on the fianlimab trial may lead some investors to question the company's broader strategy and execution, RBC Capital Markets said. Regeneron's shares sank 9.8%, the steepest decline on the S&P 500 and the Nasdaq.

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