Nvidia rally lifts S&P 500, Nasdaq to records despite oil surge

Nvidia’s stock jump lifted the S&P 500 to 7,600.03 and the Nasdaq Composite to 27,087.37 on Monday, while West Texas Intermediate crude rose 5.93% to $92.54 a barrel amid renewed tensions in the Middle East.

Nvidia gained about 5% after announcing a PC-focused artificial intelligence processor developed in a three-year partnership with Microsoft. Nvidia Chief Executive Jensen Huang described the chip as helping to ‘reinvent the PC’ for the AI era. The announcement boosted personal-computer related names: Dell Technologies climbed more than 10%, HP gained over 8% and Microsoft moved higher.

The reaction among semiconductor firms was mixed. The Philadelphia Semiconductor Index advanced, while Intel fell roughly 5% and Qualcomm declined. Software stocks recovered some earlier losses; ServiceNow and IBM posted gains. Cadence Design Systems rose after launching an Nvidia-powered AI agent for chip design. Investors are watching Broadcom’s earnings report on Wednesday for further signals on demand for AI infrastructure and servers.

Energy was the only other S&P 500 sector to finish higher. Marathon Petroleum rose about 3%, Exxon Mobil gained 2% and Chevron added 1%. Brent crude settled at $94.98 a barrel. The oil gains followed reports that Iranian state media said Tehran was suspending communication with the United States and would close the Strait of Hormuz in response to Israeli attacks on Lebanon.

President Donald Trump said he ‘couldn’t care less’ about the status of negotiations with Iran in early comments. He later posted on Truth Social that he ‘had a very productive call’ with Israeli Prime Minister Benjamin Netanyahu, wrote there would be ‘no Troops going to Beirut,’ and said talks with Iran ‘are continuing, at a rapid pace.’

Market participants weighed the geopolitical developments alongside economic data. U.S. factory activity expanded in May for a fifth consecutive month. Traders are monitoring Friday’s U.S. jobs report and the upcoming Federal Reserve policy meeting for additional direction.

All three major U.S. indexes reached intraday records during the session. The Dow Jones Industrial Average closed at 51,076.85, up 44.70 points, or 0.09%.