Markets Push Higher Despite Oil Surge

U.S. equities continued their rally on Monday, with both the S&P 500 and Nasdaq Composite climbing to fresh intraday record highs. The gains came even as crude oil prices rose nearly 3% after President Trump rejected Iran’s latest response to a U.S. peace proposal, raising concerns that the ongoing Middle East conflict could continue disrupting shipping through the Strait of Hormuz.

Despite higher energy prices, investor sentiment remained supported by strong corporate earnings, resilient economic data, and renewed enthusiasm surrounding artificial intelligence and semiconductor companies.

At midday trading, the S&P 500 rose 0.33% to 7,423.67 while the Nasdaq advanced 0.40% to 26,351.67. The Dow Jones Industrial Average was little changed.

Chip Stocks Continue to Drive Market Leadership

Technology shares remained one of the market’s strongest-performing sectors.

NVIDIA climbed 3.2%, while Micron Technology surged 6.3% as demand for artificial intelligence infrastructure continued supporting semiconductor momentum.

Qualcomm jumped 9.3% and reached a record high.

Meanwhile, Intel gained another 2.4% after recently soaring on reports of a preliminary chipmaking agreement involving Apple.

The broader technology sector advanced 1.1%, helping offset pressure from higher oil prices and geopolitical uncertainty.

Energy Sector Benefits From Oil Price Spike

The energy sector led gains within the S&P 500, climbing 2.1% as crude prices increased following stalled diplomatic negotiations between Washington and Tehran.

The conflict has effectively paralyzed shipping activity through the Strait of Hormuz, one of the world’s most important oil transit routes.

Although oil prices remain elevated, markets have so far largely avoided a broader risk-off reaction, with investors continuing to focus on strong earnings growth and economic resilience.

Materials stocks also performed strongly, rising 1.4% alongside the energy sector.

Inflation Data and China Meeting in Focus

Investors are now preparing for several major economic events later this week.

Tuesday’s consumer price index report is expected to show inflation accelerated during April due to higher energy costs caused by the Middle East conflict.

Producer price data and retail sales figures are also scheduled for release later in the week and could influence expectations around Federal Reserve policy.

At the same time, markets are closely monitoring the upcoming meeting between Trump and Xi Jinping, where discussions are expected to include Iran, artificial intelligence, Taiwan, nuclear policy, and trade cooperation involving critical minerals.

Earnings Season Nears Final Stretch

While the strongest portion of earnings season is winding down, several major companies are still expected to report results.

Upcoming earnings include Cisco and Applied Materials, while NVIDIA and Walmart are expected to report later this month.

Analysts continue to point to strong earnings growth as one of the primary drivers behind the current market rally.

Robert Edwards of Edwards Asset Management noted that major technology firms continue benefiting from powerful long-term growth themes tied to artificial intelligence and digital infrastructure.

Airline Stocks Under Pressure

Not all sectors participated in Monday’s rally.

Several airline companies declined as investors worried that higher fuel costs could pressure profit margins.

Southwest Airlines, Delta Air Lines, Alaska Air Group, and United Airlines all traded lower during the session.