Majority Long Bias Climbs in the S&P 500 as Buyers Emerge

S&P 500 futures edged higher Monday, extending a risk-on session that lifted the main index. The move followed President Trump's decision to back away from military confrontation with Iran, easing tensions that had rattled markets in prior weeks.

The shift in positioning was clear. Traders swung to a majority long bias, reversing the cautious stance that dominated earlier in the month. Buyers stepped in across the board, pushing up the S&P 500, the Nasdaq 100, and the Dow Jones Industrial Average.

Gold spot prices slipped as safe-haven demand faded. The metal had rallied during the earlier escalation but gave back some ground as risk appetite returned.

The catalyst was Trump's announcement canceling planned military strikes on Iran. The news broke late Friday, triggering a sharp rally into the close. Futures held those gains overnight and added another leg higher on Monday.

The move above recent resistance levels completed a week-long shift from defensive positioning. Sectors tied to economic growth, such as industrials and technology, led the advance. Energy stocks lagged as crude oil fell on the lower geopolitical risk premium.

Traders said the long bias was broad-based, with inflows into S&P 500 ETFs and a pickup in single-stock buying. The Cboe Volatility Index, which had spiked during the tensions, dropped back toward 15.

The session marked a clean break from the pattern of sharp intraday reversals that had defined the market since the initial Iran escalation. Monday's price action showed consistent buying from the open through the afternoon.

For now, the market is pricing a lower probability of further military escalation. The next moves will depend on diplomatic signals from both sides.