Wall Street began the week with a rebound as U.S. equities rose while oil prices retreated from recent spikes caused by the ongoing Middle East conflict. The rally was driven by easing energy market concerns and renewed strength in artificial intelligence stocks, which continue to dominate investor attention.

The Dow Jones Industrial Average gained several hundred points in early trading, while the S&P 500 and Nasdaq Composite also moved higher as technology companies led the advance.

Oil Retreat Helps Boost Market Sentiment

Energy markets have been one of the main drivers of global financial volatility in recent weeks due to the escalating conflict involving Iran. Crude prices surged above $100 per barrel earlier in the month after disruptions to shipping routes and energy infrastructure raised fears of a global supply shock.

However, oil prices eased during Monday’s session, helping stabilize equity markets. U.S. crude dropped toward the mid-$90 range after briefly trading above $102, while Brent crude also retreated from recent highs.

Treasury Secretary Scott Bessent contributed to the improved sentiment by indicating that the U.S. was allowing certain Iranian tankers to move through the Strait of Hormuz. The development suggested that energy flows might not be completely disrupted despite ongoing hostilities.

Because roughly one-fifth of global oil shipments pass through the Strait of Hormuz, any signals that shipping lanes could remain open have a significant impact on oil prices and inflation expectations.

AI Stocks Drive Market Gains

Technology stocks once again led the market higher, with artificial intelligence companies drawing strong investor interest. Shares of Nvidia rose as investors anticipated announcements from the company’s major developer conference, where new AI hardware and software initiatives are expected to be unveiled.

Nvidia has become one of the central companies powering the global AI boom, as its graphics processing units are widely used in the massive data centers required to train and operate advanced artificial intelligence models.

Other semiconductor and AI infrastructure companies also gained, reflecting ongoing demand for computing power as major technology firms invest heavily in AI capabilities.

Corporate News Adds to Market Momentum

Several individual companies also contributed to the market’s upward movement. Shares of Micron Technology jumped after the memory chip maker announced plans to expand semiconductor manufacturing in Taiwan to meet rising AI-related demand.

Meanwhile, Meta Platforms rallied following reports that the social media company could cut more than 20% of its workforce as it increases investment in artificial intelligence infrastructure.

These developments highlight the broader trend within the technology sector, where companies are simultaneously investing heavily in AI while restructuring operations to maintain profitability.

Investors Watching Geopolitics and Central Bank Signals

Despite the day’s rally, markets remain highly sensitive to geopolitical developments. The conflict involving Iran continues to disrupt global energy flows and has pushed oil prices sharply higher over the past several weeks.

At the same time, investors are closely monitoring upcoming central bank decisions, particularly from the U.S. Federal Reserve, as policymakers assess whether the surge in energy prices could reignite inflation.

If oil prices remain volatile and geopolitical tensions persist, market swings may continue. However, the strong performance of artificial intelligence stocks suggests that investor enthusiasm for the AI sector remains one of the most powerful forces driving the broader stock market.