U.S. stocks posted modest gains on Monday as a rally in semiconductor shares offset renewed concerns about oil supply and the stalled U.S.-Iran conflict. The session opened on a cautious note after President Trump rejected Iran’s latest peace proposal over the weekend, calling it “totally unacceptable,” which sent crude prices sharply higher in early trading. Despite the geopolitical overhang, buyers stepped in for chip and AI-related names, pushing the S&P 500 and Nasdaq Composite to fresh all-time closing highs.
What Moved Markets
The S&P 500 (SPI:SP500) rose 13.91 points, or 0.19%, to close at 7,412.84 — a new record. The Nasdaq Composite gained roughly 26 points, or 0.1%, finishing at 26,274.13, also a record close. The Dow Jones Industrial Average was essentially flat, adding about 10 points (+0.02%) to end at 49,609.16, as energy-sensitive components weighed on the blue-chip index.
The primary tension was between two forces: surging oil prices and surging enthusiasm for artificial intelligence. West Texas Intermediate crude jumped nearly 3% on the day, trading around $98 a barrel after Trump’s rejection of Tehran’s offer to gradually reopen the Strait of Hormuz. The move in crude pushed bond yields higher and weighed on rate-sensitive sectors. But chipmakers more than offset the drag, with names like Nvidia, Intel, Qualcomm, and Micron Technology all posting strong gains as analysts continued to highlight robust AI spending trends and what some are calling a memory “supercycle.”
Notable Movers
Qualcomm (QCOM) surged over 8% following an analyst upgrade that highlighted the company’s growing role in AI-capable mobile and edge computing chips. The move put Qualcomm among the session’s biggest large-cap gainers.
Moderna (MRNA) jumped 7.5% after the biotech disclosed it had been developing a hantavirus vaccine ahead of the recent outbreak aboard the cruise ship Hondius. The stock has now gained more than 15% over the past five sessions.
Intel (INTC) rose 5.7% on a Wall Street Journal report that the chipmaker had reached a preliminary deal with Apple (AAPL) to manufacture some of Apple’s chips — a significant win for Intel’s foundry business and a vote of confidence in U.S.-based semiconductor manufacturing.
Cisco Systems (CSCO) climbed 4.8%, leading Dow components higher.
On the downside, W.W. Grainger (GWW) slid 18% as traders locked in profits after the industrial supply company’s stock hit record highs last week. Dollar General (DG) fell 5.8% following soft fiscal 2026 guidance and uncertainty around a leadership transition.
Looking Ahead
All eyes turn to Tuesday’s April Consumer Price Index report, which is expected to be the single biggest market catalyst of the week. With oil prices elevated and the Strait of Hormuz still largely closed to commercial traffic, investors are watching closely for signs that energy costs are filtering into broader inflation measures. Cisco reports earnings on Wednesday, along with Alibaba, and both could set the tone for the back half of the week. Meanwhile, Trump is scheduled to visit Beijing later this week and is expected to encourage China to pressure Iran into a deal — a development that could move oil and equities sharply in either direction. For now, the market’s AI-fueled momentum continues to provide a floor, but the narrow leadership driving these record highs has some strategists warning that indexes could be vulnerable if sentiment shifts.