Traders on the floor of the New York Stock Exchange experienced a significant day on Monday, marked by a rebound in major averages as oil prices eased following last week’s surge. S&P 500 futures were near flat as trading closed, with a slight decrease of 0.1%. Nasdaq 100 futures dipped nearly 0.2%, while futures connected to the Dow Jones Industrial Average lost 47 points, or 0.1%.
During the regular trading session, the major averages showed strong recovery, particularly as oil prices pulled back from elevated levels. The S&P 500 rose by 1%, bouncing back from its lowest close of the year, attributed to ongoing concerns over the U.S.-Iran conflict. The Dow gained about 388 points, a rise of 0.8%, while the tech-centric Nasdaq Composite surged by 1.2%. Each of the 11 sectors in the S&P saw gains, with the technology sector leading the way. Nvidia stocks recorded an uptick of approximately 1.7% following comments from CEO Jensen Huang during the company’s annual GTC conference, where he projected $1 trillion in orders for Nvidia’s upcoming Blackwell and Vera Rubin systems through 2027.
The decline in oil prices was welcomed by investors, with Brent crude dropping around 2.8% to settle at $100.21 a barrel and West Texas Intermediate crude decreasing by 5.3%, closing at $93.50 a barrel. These reductions in oil prices came in the wake of fears that the escalating U.S.-Israel attacks on Iran could disrupt global energy supplies, particularly through the vital Strait of Hormuz. Despite Treasury Secretary Scott Bessent’s assurance that Iranian oil tankers would continue to pass through the strait, President Donald Trump indicated on Monday that plans for a coalition to escort tankers were still under consideration.
Market sentiment has been bolstered by a perceived resilient economy, controlled inflation, and strong corporate earnings. However, Holly Mazzocca, president of Bartlett Wealth Management, cautioned investors about potential risks to this growth narrative. She highlighted a significant weakening in the labor market, stating, “We came into this year with a pretty strong foundation, but especially the labor market has weakened pretty significantly. So that’s the big question for investors right now—being realistic about the overall risks to that continued growth story.”
Looking ahead to Tuesday, major companies like Lululemon, Docusign, and Oklo are set to release their earnings results, which will be closely monitored by investors. Additionally, the financial community is gearing up for the second Federal Reserve interest rate decision of the year, scheduled for Wednesday. Following recent inflationary concerns exacerbated by the conflict in Iran, expectations for interest rate cuts have diminished, according to insights from CME Group’s FedWatch tool.
