In a noteworthy shift on Wall Street, the S&P 500 experienced a rebound on Monday, propelled by remarks from former President Donald Trump about the potential resolution of the ongoing tensions surrounding the Iran war. Trump’s comments, made during an interview with CBS News, instigated a sharp decline in oil prices, which served as a key driver for stock market movements.
Prior to Trump’s statement, selling pressure on equities had begun to wane as oil prices slightly retreated, highlighting crude oil’s significant role as a barometer for investor sentiment amid geopolitical tensions. West Texas Intermediate (WTI) crude fluctuated heavily, dropping from approximately $119 per barrel late Sunday to about $100 at the market’s opening. By the afternoon, WTI had plummeted further to around $95, dipping below $86 after Trump mentioned he might consider taking control of the Strait of Hormuz, vitally important for crude transport, which Iran has threatened to close.
In earlier discussions, the Group of Seven (G7) nations considered a strategic release of their oil reserves to alleviate some of the mounting pressure on prices, which had already surged to levels more than 30% higher than the historical benchmarks of around $57 per barrel in 2026.
Amidst these fluctuations, analysts advised looking closely at sector performances within the S&P 500 to gauge market sentiment. Financials, consumer discretionary segments, and materials were among the laggards, reflecting a natural correlation between rising oil prices and market volatility. In contrast, technology and AI stocks, known to be the pillars of the current bull market, exhibited significant resilience, leading the recovery on Monday.
Companies such as Broadcom, which benefitted from last week’s positive earnings report, surged by over 4%, thereby securing a prominent spot among the S&P 500’s top performers. Nvidia also saw an uptick in trading activity, particularly as interest builds around the upcoming GTC conference. Meanwhile, GE Vernova gained ground following a favorable analyst rating.
Looking ahead, the earnings calendar remains busy with anticipated reports from major companies. Post-market earnings will come from Hewlett Packard Enterprise, Casey’s General Stores, and Vail Resorts. On the following morning, investors will focus on results from retailer Kohl’s and Chinese electric vehicle manufacturer NIO. Additionally, important economic indicators will be released, including the NFIB Small Business Optimism Index and existing home sales figures from the National Association of Realtors.
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