NEW YORK, New York - U.S. stock markets closed in positive territory Monday despite the raging war in the Middle East which has killed hundreds and caused untold destruction in Israel, and moreso in Iran. Although markets are largely ignoring the sudden and vicious flare-up, with energy installations being targeted, and the global airline industry in chaos, there is a risk the conflict could see a dramatic turn in financial markets.

"This is partly because there are so many moving parts and geopolitical considerations, and partly because the potential outcomes are so unthinkable," Russ Mould, investment director at AJ Bell told CNBC Monday. "In a worst case, oil and share prices would be the least of our worries."

Indices closed higher on Monday, with the tech-heavy Nasdaq Composite leading the charge as investor optimism.

The Standard and Poor's 500 (^GSPC) climbed 56.14 points, or 0.94 percent, closing at 6,033.11, supported by strong performances in technology and communication sectors. Trading volume reached 2.814 billion shares.

The Dow Jones Industrial Average (^DJI) rose 317.30 points, or 0.75 percent, settling at 42,515.09, with gains spread across industrials and financial stocks. Volume stood at 458.743 million shares.

The Nasdaq Composite (^IXIC) outperformed, soaring 294.39 points, or 1.52 percent, to 19,701.21, as megacap tech stocks propelled the index higher. Trading activity was robust at 8.743 billion shares.

U.S. Dollar Mixed in Global Forex Markets Monday; Euro, Pound, and Commodity Currencies Gain

The foreign exchange market saw a mixed performance on Monday, with the US dollar strengthening against some currencies while weakening against others, as traders assessed economic data and central bank expectations.

Major Currency Pairs

The euro (EUR/USD) edged higher, rising 0.06 percent to 1.1557, supported by improved risk sentiment in European markets.

The British pound (GBP/USD) gained 0.13 percent, climbing to 1.3577, despite investors trepidation  about the UK's economic outlook.

Meanwhile, the U.S. dollar (USD/JPY) strengthened against the Japanese yen, firming 0.53 percent to 144.83, its highest level in weeks.

Commodity-Linked Currencies Rally

The Australian dollar (AUD/USD) was among the top performers Monday, jumping 0.62 percent to 0.6525, buoyed by rising commodity prices and strong risk appetite.

Similarly, the New Zealand dollar (NZD/USD) surged 0.82 percent to 0.6059, marking one of the day's biggest gains.

Dollar Gains or Holds Ground Against Safe Havens and Peers

The U.S. dollar (USD/CHF) strengthened against the Swiss franc, rising 0.49 percent to 0.8143, as demand for the greenback picked up.

However, the Canadian dollar (USD/CAD) showed resilience Monday, with the pair dipping 0.04 percent to 1.3571, as oil prices provided support for the commodity-linked currency.

Global Markets Close Mixed on Monday; Asia and Europe Show Gains, Some Indices Dip

Global stock markets delivered a mixed performance on Monday, with several key indices posting gains while others edged lower amid fluctuating investor sentiment over tensions in the Middle East.

Canada's TSX Edges Up

North of the U.S. border, the S&P/TSX Composite (^GSPTSE) added 64.26 points, or 0.24 percent, finishing at 26,568.61, with energy and materials sectors contributing to the modest advance. Volume totaled 335.878 million shares.

Europe and UK Markets

The FTSE 100 (^FTSE) in London rose 24.59 points, or 0.28 percent, closing at 8,875.22, supported by gains in financial and energy stocks.

Germany's DAX (^GDAXI) climbed 182.89 points, or 0.78 percent, to 23,699.12, while France's CAC 40 (^FCHI) advanced 57.56 points, or 0.75 percent, settling at 7,742.24.

The broader EURO STOXX 50 (^STOXX50E) gained 49.10 points, or 0.93 percent, closing at 5,339.57, reflecting optimism in the eurozone's economic outlook.

Belgium's BEL 20 (^BFX) saw a modest increase Monday of 5.40 points, or 0.12 percent, ending at 4,481.61.

Asia and Pacific Markets

In Asia, Hong Kong's Hang Seng Index (^HSI) rose 168.43 points, or 0.70 percent, to 24,060.99, lifted by tech and property stocks.

In China the Shanghai Composite (000001.SS) rose 11.73 points, or 0.35 percent, to 3,388.73, supported by government stimulus hopes.

Japan's Nikkei 225 (^N225) climbed 477.08 points, or 1.26 percent, to 38,311.33, as the yen's weakness boosted export stocks.

However,  in Singapore' theSTI Index (^STI) dipped slightly Monday, losing 2.96 points, or 0.08 percent, to close at 3,908.46.

Australia's S&P/ASX 200 (^AXJO) inched up 1.00 point, or 0.01 percent, to 8,548.40, while the All Ordinaries (^AORD) gained 4.40 points, or 0.05 percent, finishing at 8,775.00.

India's S&P BSE SENSEX (^BSESN) surged 677.55 points, or 0.84 percent, to 81,796.15, hitting a fresh record high.

In contrast, Indonesia's IDX Composite (^JKSE) fell 48.47 points, or 0.68 percent, to 7,117.59, weighed down by profit-taking in commodity-linked stocks.

Malaysia's KLSE (^KLSE) edged up 1.88 points, or 0.12 percent, to 1,519.99, while New Zealand's S&P/NZX 50 (^NZ50) jumped 137.26 points, or 1.09 percent, to 12,690.13.

South Korea's KOSPI (^KS11) outperformed Monday, soaring 52.04 points, or 1.80 percent, to 2,946.66, boosted by strong semiconductor earnings.

Taiwan's TWSE (^TWII) slipped 23.05 points, or 0.10 percent, to 22,049.90, as tech stocks faced pressure.

Middle East and Africa

Israel's TA-125 (^TA125.TA) surged 71.71 points, or 2.64 percent, to 2,787.16, marking one of the day's strongest performances.

Egypt's EGX 30 (^CASE30) on Monday added 26.40 points, or 0.09 percent, closing at 31,042.40.

Meanwhile, South Africa's Top 40 (^JN0U.JO) dropped 127.93 points, or 2.37 percent, to 5,278.23, dragged down by mining and banking stocks.

Market Outlook

Analysts noted that while European and Asian markets mostly saw gains, some regions faced pressure from geopolitical concerns amid the raging war between Israel and Iran, and profit-taking. I

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