US stocks near record high, oil falls as Trump claims Iran talks underway

US equity markets posted significant gains on Monday, with the S&P 500 climbing 1.5 percent to approach its previous closing record established in June. The Nasdaq Composite advanced 2.1 percent, while the Dow Jones Industrial Average rose 1.3 percent to set a new record high of 53,178.41. Technology stocks led the advance, with Meta Platforms gaining 6 percent and Microsoft, Amazon, and Alphabet each climbing between 4.4 and 4.9 percent. Nvidia and Tesla also contributed to the rally with gains of 2.9 and 3.5 percent respectively.

Market analysts noted the strength of the rally despite what they characterized as relatively negative underlying sentiment. According to Melissa Brown, managing director of Investment Decision Research at SimCorp, the magnitude of the advance was surprising given the absence of clear fundamental support for the move.

Oil markets moved in the opposite direction, with Brent crude falling approximately 5 percent on Monday before recovering modestly as Asian trading commenced. September delivery futures were trading around $84.50 per barrel by early Tuesday, representing a 0.9 percent gain from Monday's close.

Asian equity markets showed weakness on Tuesday morning, with Japan's Nikkei 225 and Hong Kong's Hang Seng Index both declining 0.8 percent. South Korea's KOSPI fell 1.2 percent amid ongoing volatility in memory chip demand related to artificial intelligence applications.

Market movements coincided with conflicting statements regarding US-Iran negotiations. President Trump indicated that talks were underway and expressed willingness to provide Tehran an opportunity to reach an agreement before potential military action. However, Iran's Foreign Ministry spokesman stated that no talks with Washington were occurring and that no meetings with US officials were scheduled, noting instead that Iranian officials were engaged in discussions with Oman regarding maritime transit through the Strait of Hormuz.