Stock Market Today: S&P 500, Nasdaq Rise as Oil Prices Fall & Tech Rebounds

Global stock markets rebounded Monday, driven by optimism surrounding potential progress in negotiations to end the conflict in Iran, while crude oil prices experienced a significant decline. The S&P 500 closed up 1.2 percent, recovering from an earlier peak gain of 2.0 percent, with the Nasdaq and Dow Jones Industrial Average advancing 1.4 percent each.

Brent crude oil fell below $100 a barrel for the first time since March 12, dropping 11 percent during Monday’s trading session. West Texas Intermediate (WTI) crude oil settled at $88.82, down nearly 10 percent, according to market data.

“The market woke up to good news,” said Chris Larken of Morgan Stanley, as reported by Bloomberg. “But for a sustained relief rally, concrete progress on the geopolitical front is likely needed. We are still in a market driven by headlines.” The positive sentiment followed an announcement by the U.S. President regarding the initiation of talks with Iran aimed at resolving the ongoing conflict, with expressed hope for a resolution.

The technology sector led the gains, with all seven of the “Magnificent Seven” companies – Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla, and Meta Platforms – closing higher. Tesla spearheaded the rally, while artificial intelligence and defense company Palantir topped the Nasdaq with a nearly 7 percent increase.

Apple announced a three-day postponement of its Worldwide Developers Conference in June to coincide with the launch of fresh artificial intelligence products.

Similar to European markets, mining and industrial companies benefited from strengthened metal prices and expectations of lower energy costs. 3M led the Dow Jones Industrial Average with a nearly 4 percent increase, followed by Sherwin-Williams, Home Depot, and Caterpillar.

Freeport-McMoRan, a major mining company, saw a gain of over 5 percent. Airline stocks, Delta Air Lines and American Airlines, also rose after facing pressure following the outbreak of conflict.

Smurfit Westrock, a packaging manufacturer with operations in Sweden, experienced a significant surge, rising nearly 7 percent, while its competitor, International Paper, advanced by over 5 percent.

Draftkings and Flutter, gaming companies, saw gains following reports in the Wall Street Journal indicating that the U.S. Senate is considering legislation to prohibit sports betting on so-called prediction markets like Polymarket and Kalshi.

Estée Lauder, however, experienced a substantial decline after announcing plans for a merger with Spanish firm Puig. Defense stocks broadly fell, with Northrop Grumman leading the losses within the sector.

Increased risk appetite, coupled with a more than 4 percent increase in the cryptocurrency Bitcoin, boosted trading platforms Coinbase and Robinhood.

Gold prices fell sharply again, down 4 percent on the day, approaching a 20 percent decline from its record high of over $3,300 per ounce in late January. According to Bloomberg, the 10-year Treasury yield fell 4 basis points to 4.35 percent, and the dollar weakened slightly against the Swedish krona, trading at 9.32 SEK.