U.S. stocks rebounded sharply on Monday after a difficult week for financial markets, supported by a pullback in oil prices. Technology shares helped lead the recovery, with gains in Nvidia boosting investor sentiment ahead of the company’s closely watched artificial intelligence conference.
Wall Street Rebounds After Oil Price Relief
By 11:50 ET (15:50 GMT), the S&P 500 rose 1.2% to 6,707.93, while the Nasdaq Composite climbed 1.4% to 22,414.34. The Dow Jones Industrial Average also advanced 1% to 47,007.39.
The rebound followed last week’s decline in U.S. equities, when markets fell as oil prices surged due to escalating tensions in the Middle East.
Strait of Hormuz Crisis Remains Key Market Risk
Energy markets remain a central focus for investors as the Strait of Hormuz, a crucial shipping route south of Iran that carries roughly 20% of global oil tanker traffic, remains effectively blocked by Tehran. The disruption has threatened global energy supplies and increased economic uncertainty.
Although the United States has attempted to calm supply concerns, including easing certain restrictions on Russian oil exports, crude prices have continued to rise in recent weeks. Higher oil prices have also pushed up gasoline costs for U.S. consumers, an issue closely watched ahead of the 2026 midterm elections.
U.S. President Donald Trump recently called on several countries to assist Washington in reopening the Strait of Hormuz. However, reports indicate that some allies — particularly members of the North Atlantic Treaty Organization — have been hesitant to provide military support.
Trump warned in an interview with the Financial Times that the future of NATO could be affected if member nations decline to participate in securing the waterway.
The U.S. president also singled out China, suggesting he might cancel a planned summit with Xi Jinping if Beijing fails to use its influence to reopen the strait. According to reports, some oil tankers traveling to China have been allowed to pass through the corridor, while others have come under attack.
Meanwhile, the European Union is considering options to restore shipping through the passage, according to comments from European officials.
Despite volatility, oil prices pulled back slightly during Monday’s trading session. Brent crude remained above $100 per barrel, while U.S. West Texas Intermediate crude futures fell about 2.9% to $94.01 per barrel.
Nvidia Conference Draws Investor Attention
Beyond geopolitical developments, investors are also focused on Nvidia’s annual developer conference, where CEO Jensen Huang is expected to unveil new technologies aimed at strengthening the company’s position in the global AI race.
Nvidia has been a key beneficiary of the rapid expansion of artificial intelligence infrastructure. However, the company faces growing competition from chipmakers such as Advanced Micro Devices and Intel, as well as technology giants including Alphabet that are developing their own AI processors.
A growing industry shift toward AI inference, where artificial intelligence models perform real-world tasks for users, could also present challenges for Nvidia, as these systems sometimes rely on specialized chips different from traditional GPUs.
To strengthen its position, Nvidia acquired AI chip startup Groq for $17 billion in December. Huang recently said Groq’s technology would be integrated into Nvidia’s CUDA platform to improve inference performance.
The company has also invested approximately $2 billion in optical technology firms Lumentum and Coherent, which develop laser-based data transmission systems designed to accelerate communication between AI chips.
Analysts at BofA Securities expect Nvidia to announce an expanded portfolio of AI products during the conference.
Meta Shares Rise on Layoff Report
Elsewhere in the technology sector, Meta Platforms shares rose around 2% after the market opened following reports that the company is considering significant workforce reductions.
According to Reuters, Meta may cut more than 20% of its employees as it increases spending on artificial intelligence infrastructure and attempts to improve operational efficiency through AI-driven productivity tools.
The proposed layoffs have not yet been finalized and no timeline has been announced, but executives have reportedly begun preparing restructuring plans.
Central Bank Decisions in Focus This Week
Investors are also preparing for a series of major central bank policy decisions scheduled this week, including meetings by the Federal Reserve and the European Central Bank.
These meetings will be the first opportunity for policymakers to respond to the economic impact of the ongoing conflict in the Middle East, particularly the inflationary pressures created by rising oil prices.
Analysts at JPMorgan expect policymakers to focus on the growing uncertainty surrounding global growth and inflation risks.
The firm forecasts that updated projections from the Federal Reserve could push inflation expectations toward 3% this year, while growth forecasts may be slightly revised downward due to higher energy costs.
Meanwhile, the Bank of England may hold interest rates steady after earlier expectations for a rate cut were reconsidered due to the inflationary shock created by the Middle East conflict.
The European Central Bank is also expected to update its economic forecasts, with analysts predicting modest downward revisions to growth and slightly higher inflation projections.
