US stocks ended higher Monday, as investors once again returned to stocks after weeks of being under pressure due to the escalated conflict in Iran. Oil prices also declined from their recent highs.
The Dow Jones Industrial Average closed at 46,946.41 after gaining 387.94 or 0.83% points.
S&P rose by 1.01%, its biggest one-day increase in over a month. Nasdaq Composite gained 1.22%, to 22,374.18.
S&P 500 had been in decline for three weeks, closing at the lowest point of the year last Friday.
Stocks linked to artificial intelligence and technology led the rally.
Meta Platforms rose 2.3% following a report that the company was preparing to reduce at least 20% its staff. Nvidia gained 1.6% when its GTC Developer Conference began.
Micron Technology jumped by 3.7% following the announcement of plans to construct a second production facility in Taiwan.
Oil prices retreat after recent surge
The oil prices fell on Monday, after they surged above $100 per barrel last week when Iran’s conflict disrupted the Strait of Hormuz – one of the most important transit routes for oil in the world.
West Texas Intermediate crude dropped 3.9%, settling at $93,10 per barrel after briefly trading over $100 per barrel overnight.
Brent crude fell by 2.43%, to $100.70 a barrel.
After Treasury Secretary Scott Bessent announced that the United States would allow Iranian oil tankers through the Strait of Hormuz, prices fell.
The Wall Street Journal reported that the US is also working on forming a coalition to accompany ships along the waterway.
The geopolitical environment remains uncertain.
Donald Trump, the president of the United States, ordered Friday strikes against Iranian military assets on Kharg Island. Trump stated that while the strike did not target oil infrastructure, the United States may still be able to attack those facilities in the future if Iran blocks the Strait.
AI stocks, lower oil prices and market support
The modest drop in crude oil prices has also helped to boost energy-sensitive sectors.
Fuel costs are down, which has helped travel companies like Delta Air Lines, Norwegian Cruise Line Holdings, and others to grow by 3.5% and 5,1% respectively.
Dollar Tree also rose by 6.4%, after it indicated that tariff policy could be favorable.
The rally in technology stocks has also been supported by the overall market.
Tesla’s stock rose 1.1% when CEO Elon Musk announced that the Terafab AI chip could be launched in just seven days.
Analysts said that despite the positive gains in the stock market, the Middle East conflict is still a factor in the investor’s sentiment.
The markets are rebounding but caution is still advised
The Monday rally was accompanied by a relatively low trading volume.
The total trading volume on US exchanges was 17.4 billion, which is below the average 20-session level of 19.9 milliards, indicating that there may be limited confidence behind this rebound.
The gains, however, were widespread.
The S&P 500 finished with gains in all 11 sectors, including consumer discretionary and information technology. Information Technology was the highest, rising 1.39%.
The CBOE Volatility Index dropped 3.5 points, to 23.7.
On the S&P 500, advancing stocks were more than 3 to 1.
US stocks have performed better in recent months than other global markets. This is partly due to the strength of technology shares and US’s role as an oil exporter.
The S&P 500 is still about 2% below its 2026 peak, due to the ongoing uncertainty in geopolitics and economy.
The COINPAPER first published this post S&P500 jumps 1% and Dow Jones gains 388 points due to oil falling.
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