US stocks rise and catch up with gains in overseas markets

NEW YORK (AP) — The U.S. stock market is rising as it catches up with others around the world that climbed the day before, when President Donald Trump said negotiations were “proceeding nicely” with Iran on ending their war. The S&P 500 rose 0.6% early Tuesday after trading resumed following Monday’s holiday. The Dow Jones Industrial Average edged up 44 points, and the Nasdaq composite climbed 0.9%. All three indexes are at or near their all-time highs. The price for a barrel of Brent crude, the international standard, rose 3%. Treasury yields moved lower in the bond market. European and Asian markets were mixed.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

Shares were mixed Tuesday in Europe and Asia after the U.S. military said it carried out what it called “self-defense” strikes in southern Iran, including on missile launch sites and boats placing mines.

The attacks came even as President Donald Trump said on social media that negotiations on ending the war were “proceeding nicely.”

In early European trading, Germany's DAX lost 0.7% to 25,214.08, while the CAC 40 in Paris shed 0.9% to 8,187.07. In Britain, the FTSE 100 gained 0.7% to 10,540.40.

The futures for the S&P 500 and the Dow Jones Industrial Average were up 0.5%.

Oil prices were mixed, with Brent crude rising but still trading below $100 a barrel while U.S. benchmark crude oil fell.

The U.S. military said the strikes Monday were done “to protect our troops from threats posed by Iranian forces.” It said it used restraint due to the ceasefire with Iran, which gave no official response. Further details were not immediately available, including more specifics on threats from Iran and what this means for negotiations.

With the status of peace talks with Iran unclear, markets have been swayed by various developments and comments by Trump.

“Markets are behaving as though a full Iran breakthrough already exists, even though the hardest parts of the negotiation remain unresolved,” Stephen Innes of SPI Asset Management wrote in a commentary. “Washington continues to signal optimism, while Tehran insists no agreement is imminent.”

During Asian trading, Tokyo's Nikkei 225 lost 0.3% to 64,996.09, falling back from an all-time high close over 65,000 on Monday.

In Hong Kong, the Hang Seng index was nearly unchanged at 25,599.45, while the Shanghai Composite index shed 0.2% to 4,145.37.

South Korea's Kospi jumped 2.6% to 8,047.51, catching up after markets were closed Monday for a holiday.

The S&P/ASX 200 in Australia lost 0.4% to 8,657.80.

Benchmark U.S. crude oil declined $3.67 to $92.97 a barrel. Brent crude, the international standard, gained $3.03 to $96.45 a barrel after falling nearly $5 on Monday.

U.S. markets were closed on Monday for the Memorial Day holiday. On Friday, the S&P 500 added 0.4% and the Dow industrials climbed 0.6%. The Nasdaq composite gained 0.2%.

Global markets advanced Monday after regional officials in the Middle East said the United States was close to reaching an agreement with Iran to end the war, reopen the Strait of Hormuz and see Iran give up its stockpile of highly enriched uranium. But it's not clear when or how the deal might be finalized and when its various parts will take effect.