U.S. stocks moved higher on Monday, with the Nasdaq Composite leading the gains as strong performances from Meta Platforms and Nvidia lifted the tech-heavy index. The rally spread across the broader market as all 11 sectors of the S&P 500 traded in positive territory.
Energy markets showed signs of cooling after last week’s sharp spike. Brent crude oil remained above the $100 per barrel mark, but prices eased slightly, helping calm investor concerns following the previous selloff triggered by the ongoing conflict in the Middle East. Market participants continue to monitor the geopolitical situation closely due to its potential impact on global inflation and economic growth.
Investors are also assessing whether large technology companies can continue supporting the broader market if elevated fuel costs begin to weigh on consumer spending and corporate profit margins. This uncertainty comes just ahead of the upcoming meeting of the Federal Reserve, where expectations for interest-rate cuts have already weakened.
According to London Stock Exchange Group data, traders now anticipate only about 25 basis points of rate cuts through 2026. Forecasts for the next quarter-point reduction have also shifted, with expectations moving from July to sometime after October.
By 11:45 a.m. ET, the Dow Jones Industrial Average had climbed 485 points (1.04%) to 47,040.91, while the S&P 500 gained 77 points (1.15%) to 6,708.70. The Nasdaq Composite advanced 316 points (1.43%) to 22,420.61, with technology stocks leading the broad-based rally. Meanwhile, the CBOE Volatility Index, often called Wall Street’s “fear gauge,” declined to 23.72, signaling easing market anxiety.
Shares of Meta Platforms rose around 2.6% after reports suggested the company may reduce its workforce by at least 20% to offset the rising costs of artificial intelligence investments. The stock traded close to $625 during the session. Nvidia also gained a similar amount, hovering near $185 as investors awaited CEO Jensen Huang’s keynote at the Nvidia GTC Conference.
Oil prices continued to retreat. U.S. crude dropped 5.19% to $93.60 per barrel after comments from Scott Bessent suggested Washington was currently comfortable with limited shipping traffic through the Strait of Hormuz. Brent crude slipped 2.5% to $100.56, though both benchmarks remain nearly 40% higher for March.
Lower oil prices helped boost fuel-dependent companies such as Delta Air Lines and Norwegian Cruise Line. However, analysts warn that prolonged geopolitical tensions could still disrupt energy or semiconductor supply chains, potentially affecting artificial-intelligence spending plans.
Risks remain on the horizon. Analysts at Goldman Sachs cautioned that if oil supplies face a major disruption, the S&P 500 could drop to roughly 5,400 this year, nearly 19% below its recent closing level of 6,632.19. Nevertheless, the bank maintained its 7,600 year-end forecast, arguing that continued investment in AI technologies could help cushion the market against a moderate slowdown.
