U.S. stocks advanced on Monday as investors looked for signs of progress toward a U.S.-Iran ceasefire deal and weighed President Donald Trump’s threats of gradual escalation if Iran fails to reopen the Strait of Hormuz.

According to the Islamic Republic News Agency (IRNA), Iran has rejected the US proposal for an immediate ceasefire, instead insisting on a permanent end to the war. The denial follows Trump’s escalating war ultimatum, vowing to rain “hell” on Iran if the crucial Strait of Hormuz bottleneck remains closed to oil tanker traffic.

Investors took some solace from a report that showed the US, Iran and a group of regional mediators continued to discuss the terms of a possible ceasefire.

All three major U.S. indexes advanced slightly, with the S&P 500 and Nasdaq on a fourth straight day of gains.

“The reality is we hope we’re close to some kind of resolution,” said Ryan Detrick, chief market strategist at the Carson Group in Omaha. “Unfortunately, that’s not going to happen today. But I think investors are sensing that we’re seeing more talk on all sides.”

“The day-to-day volatility and headlines can be nauseating,” Detrick added. “But there is a sense of optimism in the air with this upcoming earnings season, which begins very soon, that corporate America will once again show a solid, solid performance and possibly justify what we still think of as a bull market.”

The US war against Iran has rattled markets for a little over a month. Rising crude prices fueled inflation fears and sent stocks tumbling. Although the S&P is on track for its fourth consecutive session of gains, the bellwether index remains down about 4% since the conflict began.

Economic data on Monday showed the U.S. services sector expanded more slowly than expected in March, even as employment in the sector contracted and prices paid, with inflation forecast rising to its highest level since October 2022.

The much-anticipated March jobs report, released on the Good Friday market holiday, showed the US economy added 178,000 jobs last month, nearly triple the 60,000 consensus, following a revision of February’s job losses to 133,000 from 2009.

According to preliminary data, the S&P 500 rose 29.02 points, or 0.44%, to end at 6,611.71 points, while the Nasdaq Composite gained 114.29 points, or 0.52%, to close at 21,993.47. The Dow Jones Industrial Average rose 170.36 points, or 0.37%, to 46,675.03.

Trading volume was thin on Monday, as many markets in Europe and Asia were closed for public holidays.

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