Dow climbs 95 points as AI-fueled tech rally offsets oil surge, Iran fears
Wall Street ended slightly higher on Monday as investors continued to pour into artificial intelligence-linked technology stocks, helping major indexes overcome rising oil prices and renewed geopolitical tensions following the latest developments in the US-Iran conflict.
The S&P 500 rose 0.19% to close at 7,412.84, while the Nasdaq Composite gained 0.1% to finish at 26,274.13.
Both indexes touched fresh all-time intraday highs and closed at record levels.
The Dow Jones Industrial Average advanced 95.31 points, or 0.19%, to settle at 49,704.47.
The gains came despite a sharp rise in crude oil prices after President Donald Trump rejected Iran’s latest proposal aimed at ending the ongoing conflict in the Middle East.
Tech stocks continue to power market rally
Technology and semiconductor stocks remained the primary drivers of market momentum as investors continued betting on the expansion of artificial intelligence infrastructure spending.
Micron Technology shares climbed 6.5% as enthusiasm surrounding the memory chip sector extended further.
Nvidia rose nearly 2%, while Intel added to gains after surging sharply on Friday following reports of a preliminary chipmaking agreement with Apple.
Qualcomm also reached a record high during the session.
Analysts also pointed to sustained momentum across semiconductor stocks tied to AI infrastructure demand.
The latest rally follows another strong week for equities.
Last week, the S&P 500 rose more than 2%, while the Nasdaq advanced more than 4%. Both indexes recorded their sixth consecutive weekly gains, their longest winning streaks since 2024.
The Dow Jones Industrial Average rose 0.2% last week, marking gains in five of the previous six weeks.
Oil prices jump as US-Iran tensions escalate
Investor sentiment was tempered by renewed concerns surrounding the US-Iran conflict after Trump dismissed Tehran’s latest peace proposal.
Iran reportedly submitted a counterproposal focused on ending the conflict across all fronts while seeking sanctions relief and changes to US naval restrictions, according to reports citing informed sources.
Trump responded on Truth Social by calling Iran’s proposal “TOTALLY UNACCEPTABLE!” and later described the month-old ceasefire as being on “life support” and “unbelievably weak.”
The developments pushed oil prices sharply higher as concerns intensified over possible disruptions to shipping activity through the Strait of Hormuz.
US West Texas Intermediate crude futures rose 2.78% to settle at $98.07 per barrel, while Brent crude gained 2.88% to close at $104.20 per barrel.
The rise in oil prices renewed concerns about inflation pressures, particularly related to gasoline costs and consumer spending.
Investors shift focus toward inflation and earnings
With first-quarter earnings season nearing completion, investor attention is beginning to shift back toward macroeconomic data and broader geopolitical risks.
According to LSEG IBES data, 83% of the 440 S&P 500 companies that have reported earnings so far have exceeded Wall Street expectations.
Analysts now estimate aggregate first-quarter S&P 500 earnings growth of 28.6% year-over-year, significantly above the 14.4% growth forecast at the start of April.
Investors are now closely watching upcoming economic reports, including consumer price index data, retail sales figures, producer prices, and industrial production numbers later this week.
Market participants are also monitoring Trump’s planned meeting with Chinese President Xi Jinping in Beijing, where discussions are expected to include Iran, trade, artificial intelligence, Taiwan, and critical minerals agreements.
The post Dow climbs 95 points as AI-fueled tech rally offsets oil surge, Iran fears appeared first on Invezz