Stock market today: Stocks try to rebound as investors shake off Mideast tensions, focus on earnings

US stocks rose on Monday but pared earlier gains as investors shifted their focus from the fallout of Iran's attack on Israel to earnings season amid inflation risks to rate-cut hopes.

The S&P 500 (^GSPC) rose slightly while the Dow Jones Industrial Average (^DJI) gained 0.3% after ending the week with sharp losses. The tech-heavy Nasdaq Composite (^IXIC) wavered between positive and negative territory.

Focus is shifting as investors shrug off initial concerns of a full-blown war in the Middle East after Iran's direct missile and drone strike on Israel on Saturday. Efforts by the US to encourage Israel not to retaliate have helped settle nerves, in part because the well-telegraphed attack allowed damage to be contained.

Stocks have come under pressure in recent days as earnings season got off to a lackluster start and concerns persisted that inflation cooling to the Federal Reserve's 2% target has stalled. Traders have scaled back bets on the depth of Fed interest rate cuts this year in the face of disappointing economic data.

Retail sales in March increased 0.7% from the previous month, as consumers continued to spend despite a higher interest-rate environment. The monthly reading topped economist expectations for a rise of 0.4%, according to Bloomberg data.

Goldman Sachs (GS) on Monday got this week's earnings off to a more upbeat start as investors look to corporate results to revive the early 2024 equity rally. Shares for the Wall Street lender added as much as 5% after first quarter profit jumped to beat estimates.

In commodities, oil prices fell more than 1% on Monday after rising ahead of Iran's airstrike. West Texas Intermediate crude futures (CL=F) were trading around $85 a barrel, while Brent futures (BZ=F) slipped toward the $89 mark.

Meanwhile, the 10-year Treasury yield (^TNX) added about 10 basis points to trade near 4.61%, coming back from a sharp fall on Friday to eye a return to last week's five-month high. Fellow safe haven gold (GC=F) slipped after gaining as much as 1.2% last week as Middle East tensions escalated.