Stocks Jump Monday as Oil Prices Fall

Quick overview

Stock market indices closed low on Friday but surged on Monday after oil prices dipped. The Iran war has been making energy rates fluctuate and has been playing havoc on Wall Street.

The Nasdaq Composite climbed 1.1% on Monday while the S&P 500 gained 0.9% and the Dow added 0.8%. The increase was due to oil prices falling after weeks of rising rates in the energy market. This may only be a small reprieve in the ongoing Iran crisis, though.

Oil prices dropped from just above $200 per barrel to $95 per barrel on Monday, with WIT crude falling 3% and Brent crude dropping 1%. This change in rates has come on the heels of an announcement from the treasury Secretary Scott Bessent. He said that the U.S. government is following oil tankers through the Strait of Hormuz.

Energy and Tech Stocks Climb

Energy prices are dipping for now but could be back up after any further alterations occur near Iran. Because no agreement for peace is being considered by the parties involved for now, we expect fighting there to continue. Energy stocks are up almost across the board, with a number of high performing assets from that sector already this week.

BP (BP) gained 0.95% on Monday while EOG resources (EOG) climbed 0.94%. Permian Resources (PR) added 0.21%, and Chord Energy Group (CHRD) rose 2.07%.  Even with gas prices dropping, most analysts expect the market to rebound quickly and energy stocks to continue to climb for now.

Meta is one of the top-earning technology stocks so far for the week with gains of 2% on Monday. The Magnificent Seven, which mostly consist of tech stocks, are very bullish at the start of the week. Alphabet (GGOGL) added 0.64% while  Apple (AAPL) gained 1%. Microsoft (MSFT) is doing well too, with gains of 0.86% for the day. The tech sector is still climbing from last week’s gains, which may leave many stocks near record highs,

Of course, Nvidia (NVDA) is the one to watch for indicators as to how AI-related tech stocks will perform. Nvidia jumped 2.23% on Monday in a strong performance that continues to allay fears over the death of the AI market and overspending concerns from investors.

President Donald Trump spoke to reporters over the weekend and told them that Iran is ready to make a deal, but he is not. It appears that the war will drag on for longer, which could make for a volatile stock market and declining stock values overall.

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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