- US equities remained firm on Monday as oil prices slightly eased from the $100 mark.
- Tech and financial stocks led the gains, with Micron Technology surging 3.7%.
- Despite the mild recovery, the persistent Middle East crisis and the upcoming Fed rate decision keep the markets cautious.
US equities advanced on Monday, rebounding from last week’s risk-off sentiment as easing oil prices and tentative signs of stability in the Middle East lifted investor confidence.
The S&P 500 rose about 1.1%, while the Dow Jones Industrial Average gained roughly 1% and the Nasdaq Composite added 1.2%. The move higher came as crude prices retreated from recent spikes, easing fears of a prolonged energy shock tied to the ongoing US-Iran-Israel conflict.
Oil markets showed signs of stabilization after several tankers successfully navigated the Strait of Hormuz over the weekend, alleviating immediate concerns over supply disruptions. Crude prices fell sharply from an early surge above $102 per barrel to near $93.50 before partially recovering, supporting equities through a well-established inverse correlation between energy prices and risk assets.
Technology and financial stocks led the gains, with chipmakers outperforming on continued optimism around artificial intelligence demand. Shares of Nvidia rose 1.6%, while Micron Technology jumped 3.7% ahead of its earnings report. Meta Platforms climbed 2.3% on restructuring-related developments. Other sectors remained modestly positive with electronic tech and transportation stocks retaining resilience, while the telecom sector lagged.
Meanwhile, exchange operators have been pushing for extended trading hours as Cboe said that it filed a proposal with the SEC to introduce 24/5 trading on its EDGX Equities Exchange, targeting a December 2026 launch. On the other hand, Nasdaq has also signaled the same plan for round-the-clock trading, which shows a strong investor demand for continuous market access.
Sentiment remains broadly cautious despite Monday’s rebound as the US-Iran conflict has entered the third week, and threats to shipping routes continue to keep volatility high. Treasury yields have slipped slightly, lending mild room to the equities despite lighter trading activity.
Moving ahead, investors are now turning their focus to the Fed’s upcoming policy decision, with expectations that rates will remain unchanged. Market participants will closely watch policymakers’ comments for clues on the timing of potential rate cuts, particularly as geopolitical risks continue to shape inflation expectations and global growth outlook.