U.S. stocks closed higher on Monday on hopes a truce was on the horizon between Israel and Iran after days of missile strikes, as Iran called on U.S. President Donald Trump to force a ceasefire in the four-day-old aerial war.

Market Snapshot

The Dow Jones Industrial Average rose 317.3 points, or 0.75%, to 42,515.09, the S&P 500 rose 56.14 points, or 0.94%, to 6,033.11 and the Nasdaq Composite rose 294.39 points, or 1.52%, to 19,701.21.

Market Movers

Tesla was up 1.2%. The electric-vehicle company closed Friday with a gain of 1.9% and ended up 10% for the week. The stock has fallen 19% this year. CEO Elon Musk said last week that Tesla's robotaxi service launch in Austin, Texas, could start June 22.

Shares of Nvidia, the leading maker of artificial-intelligence chips, rose 1.9%. The stock rose 0.2% last week and has risen for three consecutive weeks.

Advanced Micro Devices jumped 8.8% to $126.39. Analysts at Piper Sandler raised their price target on shares of AMD, an Nvidia rival, to $140 from $125 and maintained their Overweight rating. The company last week introduced its latest artificial-intelligence chips.

Drone maker companies rallied on Monday. AIRO surged 29%; Unusual Machines soared more than 21%; Red Cat up 10%.

Rare Earth stocks shined on Monday. The Metals Company gained nearly 29%; USA Rare Earth shares climbed over 5% as the company said it signed a memorandum of understanding with Moog Electric Motion Solutions to deliver neodymium magnets for its data center cooling pumps.

Nippon Steel's purchase of United States Steel was approved after the companies signed an agreement with the Trump administration that resolves national-security concerns. The pact gives the government a so-called golden share, granting it authority over U.S. Steel's production and trade matters. Nippon Steel also will make around $11 billion in new investments over the next three years and has committed build a new steel mill after 2028 that would boost the total investment to $14 billion. U.S. Steel shares were up 5.1%.

Boeing rose 0.7% as investors as awaited more information about the tragic Boeing 787 Air India crash. The cause of the crash has yet to be determined. The jet's flight data recorder and the cockpit voice recorder have been recovered, which should yield more insight in the coming days.

Roku rose 10% after the streaming company said it was partnering with Amazon.com in a bid to boost its ad sales. The partnership will combine all the people viewing content through the companies' systems and devices into one pool. Marketers will be able to use Amazon's ad-buying system to reach that combined audience.

Sage Therapeutics jumped 35% to $9.07 after Supernus Pharmaceuticals reached an agreement to acquire the fellow biopharmaceutical company for $8.50 a share in a deal worth an initial $561 million. The terms of the deal also include one non-tradable contingent value right payable upon achieving certain sales goals, which could bring Sage shareholders an additional $3.50 a share and $234 million by the end of 2030.

Victoria's Secret gained 2.4%. Activist investor Barington Capital Group has built a stake in the lingerie retailer, saying it believes that Victoria's Secret hasn't lived up to its full potential, The Wall Street Journal reported, citing people familiar with the matter.

Incyte rose 5.1% after the biotech company released data from two studies of its monoclonal antibody treatment INCA033989 that showed "rapid and durable normalization of platelet counts across all dose levels" in patients with mutant calreticulin-expressing myeloproliferative neoplasms, a group of rare blood cancers.

Sarepta Therapeutics tumbled 42% after suspending shipments of Elevidys for infusions in non-ambulatory patients because of the death of a second patient from acute liver failure. The patients in both cases had Duchenne muscular dystrophy and were unable to walk. Sarepta voluntarily has paused dosing in a clinical trial and was "taking immediate, decisive steps to better understand and mitigate the risk of acute liver failure, including enhancing the immunosuppressive regimen," said Louise Rodino-Klapac, Sarepta's chief scientific officer.

Market News

Trump Calls for Tehran Evacuation as Israel Vows New Strikes

President Donald Trump called for the evacuation of Iran’s capital Tehran on Monday, hours after he urged the country’s leadership to sign a deal to limit its nuclear program and Israel signaled strikes would continue.

It wasn’t clear if Trump knew of a fresh round of attacks Israel may have planned for the city, which has a population of more than 9 million people. Israel had earlier warned one Tehran neighborhood to evacuate and video showed massive traffic jams as people sought to escape. Soon after Trump’s post, Iran’s Fars news agency reported several explosions east of the city.

Trump to Leave G7 Summit Early Due to Middle East Situation

U.S. President Donald Trump is leaving the Group of Seven summit in Canada a day early due to the situation in the Middle East, the White House said on Monday.

The G7 has struggled to find unity over conflicts in Ukraine and between Israel and Iran as Trump overtly expressed support for Russian President Vladimir Putin and has imposed tariffs on many of the allies present.

Trump had earlier urged everyone to immediately evacuate Tehran, and reiterated that Iran should have signed a nuclear deal with the United States.