US stocks traded near record levels on Monday as softening oil prices and optimism over progress in US-Iran talks helped support investor sentiment, even as rising Treasury yields reflected concerns about the outlook for inflation and interest rates.The S&P 500 rose 0.1%, coming within 1.3% of its all-time high set earlier this month. The benchmark index is notching its 11th weekly gain in the last 12 weeks.The Dow Jones Industrial Average rose 220 points, or 0.4%, in early trading, while the Nasdaq Composite slipped 0.2%, the AP reported.Investor sentiment got a boost after weekend talks between the United States and Iran. US Vice President JD Vance said the discussions had laid “a good foundation for a successful final deal”.Markets are closely watching developments in West Asia as a permanent deal could ensure uninterrupted oil shipments through the Strait of Hormuz, a vital route for global energy supplies.Brent crude oil fell 2.8% to US$78.34 a barrel, close to the level of around US$70 seen before the conflict. Iran’s military claimed on Saturday that it had again closed the Strait of Hormuz, although the US Central Command denied this claim.Despite falling oil prices, Treasury yields edged higher as investors assessed the possibility that the Federal Reserve may need to raise interest rates later this year to control inflation.Economists expect consumer inflation to rise from 3.8% in April to 4.1% in May in the key inflation report due on Thursday.The yield on the benchmark 10-year Treasury note rose to 4.49% from 4.46% on Thursday.According to CME Group data, traders are now pricing in a nearly 90% chance that the Fed will raise its benchmark rate at least once before the end of the year, up sharply from 57% a week ago.Higher bond yields have emerged as a concern for equity markets globally, especially for richly valued technology stocks that have been on the rise on enthusiasm over artificial intelligence.Among individual stocks, SpaceX fell 6.1%, extending losses to a third consecutive session after a strong performance following its much-hyped stock market debut.The stock slipped below US$174 after initially listing at US$135 per share.Healthcare major AbbVie gained 4.9% after announcing an agreement to acquire Apogee Therapeutics and its pipeline of treatments for dermatology, respiratory and immunology-related diseases.Apogee Therapeutics surged 46.9% after the deal was announced, valuing it at about US$10.9 billion.Outside the US, Britain’s FTSE 100 rose 0.5% after Prime Minister Keir Starmer announced he would step down as leader of the Labor Party and leave office within a few weeks.Asian markets continued their rally, with Japan’s Nikkei 225 climbing 1.5% to a new record high, led by technology shares benefiting from a surge in artificial intelligence.South Korea’s Kospi also rose 0.7% to a record high, supported by AI-related companies. **AP**