Stocks rise as investors shake off Iran conflict

Stocks erased losses to finish the session higher

Stocks recouped early losses as investors stepped in to pick up shares at lower levels shaking off the conflict between the U.S. and Iran.

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TickerSecurityLastChangeChange %
I:DJIDOW JONES AVERAGES22679.99+1,627.46+7.73%
SP500S&P 5002663.68+175.03+7.03%
I:COMPNASDAQ COMPOSITE INDEX7913.238014+540.15+7.33%

All three of the major averages finished the Monday session near the highs of the day, trimming earlier losses which continued from Friday, after a U.S. airstrike killed Iranian Gen. Qassim Soleimani, head of the Islamic Revolutionary Guard Corps' elite Quds Force, causing tensions to flare in the Middle East.

Defense names, like Lockheed Martin, Northrop Grumman, Raytheon and General Dynamics were mixed after gaining on Friday.

TickerSecurityLastChangeChange %
LMTLOCKHEED MARTIN CORPORATION367.95+17.45+4.98%
NOCNORTHROP GRUMMAN CORPORATION332.33+18.72+5.97%
RTNRAYTHEON COMPANY116.96-5.47-4.47%
GDGENERAL DYNAMICS CORPORATION133.69+8.01+6.37%

Boeing rebounded after an internal audit uncovered another potential design flaw with its best-selling 737 Max aircraft. The planemaker isn't expected to get the 737 Max back in service until February at the earliest.

TickerSecurityLastChangeChange %
BABOEING COMPANY148.77+24.25+19.47%

Late afternoon shares of retailer Pier 1 tumbled on reports of a looming bankruptcy, the shares were halted heading into the closing bell.

TickerSecurityLastChangeChange %
PIRn.a.n.a.n.a.n.a.

Gold miners Barrick Gold and Newmont Mining traded mixed, as did energy giants Exxon Mobil and Chevron after the former released a regulatory filing that said its fourth-quarter results will be lower than a year ago.

TickerSecurityLastChangeChange %
GOLDBARRICK GOLD CORP.20.55+0.60+3.01%
NEMNEWMONT GOLDCORP CORPORATION50.11+2.96+6.28%
XOMEXXON MOBIL CORPORATION40.47+1.26+3.21%
CVXCHEVRON CORP.80.39+5.28+7.03%

As U.S. equity markets sold off, commodity prices rallied. West Texas Intermediate crude oil, the U.S. benchmark climbed 0.2 percent to $63.20 per barrel. It was up more than 1 percent earlier in the session.

Brent crude, the international benchmark, gained 0.4 percent to $68.86 per barrel. It was up more than 1.2 percent Monday

In Asia, Japan's Nikkei slid 1.9 percent, Hong Kong's Hang Seng lost 0.8 percent and China's Shanghai Composite was little changed.

Meanwhile, the price of gold, which investors buy in times of uncertainty as a safe haven of value, rose 1.6 percent to $1,577 per ounce, its highest since April 2013, amid the heightened tensions in the Middle East.

U.S. Treasurys were little changed with the yield on the 10-year note holding at 1.79 percent.

In Europe, London's FTSE slipped 0.8 percent, Germany's DAX dropped 1.3 percent and France's CAC was down 1 percent.

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Asian markets were mostly under pressure as Japan's Nikkei lost 1.9 percent, Hong Kong's Hang Seng fell 0.8 percent and China's Shanghai Composite was unchanged.

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FOX Business' Ken Martin and the Associated Press contributed to this article.