Nasdaq Ends 13-Day Rally as Iran Ceasefire Deadline Weighs on Markets

U.S. stocks retreated on Monday, with the Nasdaq Composite snapping a remarkable 13-day winning streak as geopolitical uncertainty surrounding Iran cast a shadow over investor sentiment heading into a new trading week.

The Nasdaq fell modestly after its historic run of consecutive gains, while the Dow Jones Industrial Average and S&P 500 also closed in negative territory, though losses remained relatively contained as traders awaited developments on the diplomatic front.

Markets have been closely tracking the conflict in Iran, now entering its eighth week, as an imminent ceasefire deadline loomed over the session. Investors grew increasingly cautious ahead of the cutoff, with risk appetite softening across major asset classes including equities, commodities, and currencies.

Energy markets remained elevated amid the ongoing uncertainty, with oil prices holding near recent highs as traders priced in the possibility that the ceasefire deadline could pass without a resolution, raising fears of further escalation in the region.

Despite Monday's pullback, analysts noted that the broader market has shown remarkable resilience over recent weeks, with the Nasdaq's 13-day winning streak representing one of the longest such runs in years. Many market participants attributed the prior rally to strong corporate earnings and easing inflation data.

Looking ahead, investors said they would be watching closely for any official statements from diplomatic channels regarding the Iran ceasefire, as well as a busy slate of earnings reports and economic data due later in the week that could help set the tone for markets going forward.