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US stocks rose on Monday as oil prices retreated and eased pressure on global markets. The rebound came after limited tanker movement resumed through the Strait of Hormuz and as major economies signaled they could release more emergency oil reserves if needed.
At midday in New York, the S&P 500 was higher by 1.1%, the NASDAQ 100 was up 1.3%, and the Dow Jones Industrial Average was higher by 0.9%. West Texas Intermediate crude was lower by 3.4% to $95.32 per barrel, and the 10-year Treasury yield was at 4.23%.
Meanwhile, Bitcoin climbed 2.2% to $73,302.57, and Ether jumped 6.8% to $2,274.67.
The biggest change in the market came from the energy sector. Oil prices fell as the prices of oil moved lower due to the fact that a few ships were able to pass through the Strait of Hormuz, which raised hopes that the worst may not last at the same level of intensity. However, the International Energy Agency stated that additional emergency stocks may be released if the need arises.
This drop in crude is fed directly into equities and bonds. Lower oil prices alleviated concerns of a prolonged energy shock that could push inflation higher and cloud the interest-rate outlook. Treasury yields declined as investors reduced some inflation worries, while the Bloomberg Dollar Spot Index fell 0.5%. The euro advanced 0.6% to $1.1483, the British pound rose 0.5% to $1.3298, and the Japanese yen advanced 0.3% to 159.30 per dollar.
The market reaction was tepid. Hormuz traffic remained well off normal levels, and the Iran war entered its third week with no apparent resolution. President Donald Trump pressed allies to do more to help reopen the route, while Iranian Foreign Minister Abbas Araghchi said there were no talks or ceasefire sought.
Technology stocks led the recovery as investors returned to growth shares. NVIDIA drew attention as its annual AI conference opened on Monday, and the broader sector gained support from continued spending on artificial intelligence infrastructure. The market also tracked reports that OpenAI is discussing a possible joint venture with private equity firms, adding to the focus on AI investment across the sector.
Investors also looked ahead to the Federal Reserve’s policy decision due Wednesday. Officials are widely expected to keep rates unchanged, but markets are watching for guidance on how the central bank views the balance between softer labor data and fresh inflation risk from energy prices. The latest oil pullback offered some relief, yet uncertainty around the conflict still clouds the near-term inflation outlook.
Major Wall Street banks kept a constructive medium-term view on US equities despite the recent volatility. Strategists pointed to ongoing earnings growth and valuations that have become less stretched than earlier this year. However, they warned that a longer conflict or another sharp rise in crude could weigh on sentiment and renew pressure on global stocks.
Meta Platforms will pay up to $27 billion over five years for AI infrastructure from Nebius Group.
Nebius said the agreement includes $12 billion of committed capacity by 2027, with another $15 billion conditional on expansion milestones.
xAI is seeking bankers and private credit lenders as it expands Grok’s finance capabilities.
CoreWeave, Cerebras Systems, and BCE will support a major AI data center project in Saskatchewan.
BCE said it will invest an additional C$1.7 billion in the data center development.
Banks led by JPMorgan attracted demand for nearly $15 billion of debt tied to the leveraged buyout of Electronic Arts.
Dollar Tree issued a mixed annual outlook, raising questions about the pace of future consumer gains.
Public Storage agreed to acquire National Storage Affiliates in an all-stock transaction valued at about $10.5 billion, including debt.
National Storage Affiliates shares surged after the takeover announcement.
Micron said it plans to build a second chip facility at its newly acquired Taiwan site.
Coinbase and other crypto-linked stocks advanced as Bitcoin traded above $73,000.
Fertilizer stocks weakened after an analyst downgrade on valuation concerns.
The day’s rebound reflected relief over easing oil prices and lower yields, but investors continued to watch the Middle East closely. A clearer recovery in shipping through the Strait of Hormuz would support that calmer tone. Any renewed disruption could quickly revive inflation fears and pressure stocks again.
Also Read: Stock Market Today: Sensex Flat at 74,560, Nifty at 23,148 Amid US-Iran War; Adani Power Jumps 4%
