Stock market today: Dow, S&P 500, Nasdaq soar as Trump postpones Iran strike, citing 'very good' talks

Market Reaction to Geopolitical Developments - US stocks surged on Monday, with the Dow Jones Industrial Average rising 1.6% (over 700 points), the S&P 500 increasing by 1.3%, and the Nasdaq Composite climbing 1.4% [1][6] - The market's optimism was fueled by President Trump's announcement to postpone military strikes on Iran's energy infrastructure, following "very good and productive" talks between the US and Tehran [2][16] - Oil prices fell significantly, with West Texas Intermediate crude futures dropping around 7% to approximately $90 per barrel, and Brent crude falling to around $102 after earlier trading above $113 [4][7] S&P 500 Rebalancing and AI Focus - The S&P 500 underwent quarterly rebalancing, adding companies like Vertiv, Lumentum, Coherent, and EchoStar, which all saw stock increases of over 2% premarket [8][9] - These companies, involved in data centers, optical networking, and satellite communications, replaced Match Group, Molina Healthcare, Lamb Weston Holdings, and Paycom Software, reflecting a growing focus on artificial intelligence in the market [10][11] - Year-to-date stock performance for Vertiv, Lumentum, and Coherent showed significant increases, with Lumentum rising 91% and Coherent 37%, highlighting their partnerships with Nvidia, a major player in AI [11] Oil Market Forecasts - Goldman Sachs raised its oil price forecasts, expecting Brent to trade at $110 per barrel through March and April, up from a previous estimate of $98 per barrel, due to anticipated disruptions in Hormuz flows [26] - The bank also adjusted its average price expectations for 2026, now forecasting Brent and WTI at $85 and $79 per barrel, respectively, compared to earlier estimates of $77 and $72 [26][27] - Analysts noted that the market may require a growing risk premium to hedge against potential shortages, indicating a shift towards higher strategic stockpiling and long-dated prices [27]