U.S. stocks traded higher on Monday as investors weighed rising geopolitical tensions alongside ongoing strength in AI and another round of corporate earnings. The S&P 500 and Nasdaq Composite each gained roughly 0.3%, extending their march deeper into record territory after Friday’s strong jobs report, while the Dow Jones Industrial Average hovered near the flat line after briefly slipping into negative territory early in the session.
Wall Street’s optimism came despite another jump in oil prices after Trump criticized Iran’s latest response to a proposed peace framework aimed at ending the ongoing conflict. Brent crude rose above $104 per barrel as traders monitored the increasingly fragile situation around the Strait of Hormuz, while investors also looked ahead to key inflation reports later this week that could shape expectations for interest rates and the broader economy.
Market Movers:
- monday.com (MNDY) +4%: Shares moved higher after the software company reported stronger-than-expected quarterly results and raised its full-year outlook. Investors were encouraged by accelerating AI-related demand and improving profitability across its enterprise productivity platform.
- Plug Power (PLUG) +14%: Plug Power rallied ahead of its earnings release as speculative interest returned to hydrogen and alternative energy stocks. The move also followed improving sentiment around clean energy infrastructure spending and AI-related power demand.
- Corning (GLW) +10%: Corning jumped after Bank of America added the stock to its “US 1 List,” highlighting growing demand for optical connectivity products tied to artificial intelligence infrastructure. Nvidia’s expanding partnership with Corning also reinforced optimism around AI networking and data center growth.
- Circle Internet Group (CRCL) +13%: Circle climbed after reporting stronger stablecoin margins and rising institutional adoption of USDC despite softer earnings growth. Investors focused on expanding crypto payment use cases and the company’s reduced reliance on third-party exchanges.
- Micron (MU) +7%: Micron extended its historic AI-fueled rally as investors continued pouring into semiconductor and memory-related trades. The company remains one of the biggest beneficiaries of booming demand for AI servers and high-bandwidth memory chips.
- Beazer Homes (BZH) +28%: Shares soared after Dream Finders Homes proposed an all-cash acquisition deal valued at roughly $704 million. The buyout offer represented a substantial premium and sparked renewed speculation about consolidation across the housing sector.
- Barrick Mining (B) +8%: Barrick advanced after delivering strong quarterly earnings fueled by higher gold production and surging free cash flow. The company also announced a new $3 billion share repurchase program, boosting investor confidence.
- IREN Limited (IREN) -8%: IREN slid after announcing a $2 billion convertible notes offering that raised concerns about future shareholder dilution. The decline came despite continued enthusiasm around the company’s AI cloud and infrastructure expansion strategy.
Oil Prices Remain a Major Market Driver
Energy markets stayed volatile as investors monitored escalating rhetoric between Washington and Tehran. President Trump’s rejection of Iran’s revised proposal reignited concerns that tensions in the region could drag on longer than expected, particularly as shipping activity through the Strait of Hormuz remains heavily disrupted. Analysts estimate that millions of barrels per day of oil supply continue to be affected by the conflict, keeping upward pressure on crude prices and inflation expectations. Despite the geopolitical backdrop, oil prices remain below the panic levels some analysts feared earlier in the conflict, helping equities maintain their broader upward trend.
AI Trade Continues Dominating Wall Street
AI remained the market’s most powerful theme as chipmakers, infrastructure firms, and AI software companies continued attracting heavy investor inflows. Micron’s role in the booming memory-chip trade drew fresh attention after the Roundhill Memory ETF reached $6.5 billion in assets in just 36 days, making it one of the fastest-growing ETF launches ever. Investors have continued rotating aggressively into companies tied to AI servers, networking equipment, cloud computing, and semiconductor manufacturing. The latest rally also reinforced how concentrated market leadership has become, with technology and AI-related names driving a significant portion of the broader market’s gains.
Investors Brace for Key Inflation Data
Wall Street is now preparing for a crucial week of economic reports that could influence the Federal Reserve’s next moves. Upcoming Consumer Price Index and Producer Price Index data will offer investors a clearer read on whether rising energy costs tied to the Middle East conflict are beginning to filter through the broader economy. Inflation remains one of the market’s biggest risks, especially as oil prices rebound and consumer confidence weakens. At the same time, stronger-than-expected labor market data and resilient corporate earnings have helped ease fears of an imminent recession.
Looking Ahead
Investors will remain closely focused on developments surrounding Iran, oil prices, and this week’s inflation reports as markets attempt to build on recent record highs. The AI boom continues acting as Wall Street’s primary growth engine, particularly across semiconductors, cloud infrastructure, and enterprise software. However, rising energy prices, elevated valuations, and geopolitical uncertainty could increase volatility if inflation begins accelerating again or tensions in the Middle East deteriorate further.