The U. S. stock market presented a mixed picture on Monday, with rising oil prices and geopolitical tensions creating headwinds even as enthusiasm for artificial intelligence and strong corporate earnings provided support. The Nasdaq Composite and S&P 500 managed to edge higher, while the Dow Jones Industrial Average remained nearly flat.
Investor sentiment was cautious as President Trump rejected Iran's latest proposal to end the ongoing conflict, reigniting concerns about potential energy supply disruptions, particularly around the Strait of Hormuz. This pushed Brent crude oil prices up nearly 3% to $104.18 a barrel. Despite the surge in oil prices, the market has demonstrated resilience, bolstered by strong corporate earnings and continued optimism around semiconductor and AI-related companies.
Several analysts suggest the market is currently navigating competing forces: geopolitical uncertainty and a technology-driven earnings boom. Chipmakers like Nvidia and Intel continued their AI-driven rally, while Qualcomm surged following an analyst upgrade. HSBC raised its year-end 2026 S&P 500 target to 7,650, citing strong corporate earnings and resilient technology stocks, and suggested the index could even surpass 8,000 if sentiment improves. Investors are closely monitoring upcoming U. S. inflation data, as well as a meeting between President Trump and Chinese President Xi Jinping, where discussions are expected to include the conflict with Iran.
