Stock Market Surges on Cheaper Oil and AI Growth

The stock market made a dramatic turnaround on Monday morning, with all three major indexes rising by more than 1%.

Cheaper oil prices and continued AI growth drove the rally, with the S&P 500 gaining 1.2%, the Nasdaq Composite leading with a 1.8% jump, and the Dow Jones Industrial Average up 560 points or 1.1%.

The energy sector was the most obvious catalyst for the market's shift in mood, with President Trump reportedly scrapping planned strikes against Iran in favor of diplomatic talks, sending oil prices plummeting and inflation pressure easing.

This change in sentiment also reflected the positive AI earnings reports from last week, particularly Alphabet's 5.3% rise as its Google Cloud business grew by 82%.

The Magnificent 7 technology stocks followed suit, with Nvidia rising 3.1% and Apple down 1.9%, nursing a hangover from last week's soft guidance.