The Dow Jones industrial average rose 0.6 percent, the broad-based S&P 500 index rose 1.0 percent, and the tech-heavy Nasdaq composite index rose 1.2 percent.
The early market decline was caused by the weekend's stalled talks between the US and Iran. At 4 p.m. local time in Sweden, the US began a blockade of the Strait of Hormuz that Trump had threatened on Sunday. On Monday evening, Trump announced that Iranian representatives had contacted him.
"I can tell you that we have been called by the other side. They want to make a deal," Trump said, giving investors hope that a deal between the US and Iran will eventually be concluded.
