All three major US stock indexes closed sharply higher. Consumer discretionary stocks led the sector gainers, with a solid boost from Tesla.

WTI crude oil collapsed more than 10% on Monday in one of its sharpest selloffs in decades, as Iran’s long-awaited retaliation against the U.S. turned out to be surprisingly restrained. After weeks of escalating fears, the muted response from Tehran has cast doubt on the likelihood of a broader conflict — helping shift market sentiment back toward monetary policy and risk assets. Traders are now re-evaluating prospects for Fed rate cuts and a Wall Street rebound, with the S&P 500 and Nasdaq 100 flashing bullish reversal signals to start the week.