Nvidia Boosts Nasdaq, Market Ignores Oil Surge
US stocks closed higher on Monday (June 1st), setting another record, despite soaring oil prices amid Middle East tensions. The S&P 500 rose 0.26% to 7,599.96, the Nasdaq gained 0.42% to 27,086.81, and the Dow rose 0.09% to 51,078.88. All three indexes briefly touched intraday records and closed at new highs.
The technology sector was the main driver after Nvidia surged more than 6% after launching a new processor for PCs. The impact spread to related stocks, with Dell rising more than 10% and HP gaining more than 8%. Conversely, Intel fell more than 4%, indicating the market believes the PC chip market is shifting again.
Outside of technology, the energy sector was the only other S&P 500 sector in the green. Marathon Petroleum rose nearly 4%, while Exxon Mobil and Chevron rose 2.8% and 1.9%, respectively, in line with the oil price rally.
Oil surged to open the week: WTI rose 5.93% to close at US$92.54/barrel, while Brent rose 4.24% to close at US$94.98/barrel. This rally came after Iranian state media reported that negotiators had stopped communications with the US and that Tehran would close the Strait of Hormuz in response to an Israeli attack on Lebanon.
On the political front, Trump sent mixed signals. He told CNBC he didn't care if peace negotiations with Iran ended, but later wrote in Truth Social that he had a "productive" call with Benjamin Netanyahu and asserted that no troops would be heading to Beirut. In a separate post, Trump also said talks with Iran were "continuing, and rapidly."
The market remains closely monitoring the fragile path of a ceasefire. Last week, US and Iranian negotiators reportedly reached a 60-day memorandum of understanding (MoU), fueling an equity rally, but Trump closed the Situation Room meeting without announcing a final decision. With oil prices surging again and geopolitical headlines shifting rapidly, investors are now focused on whether the tech rally can sustain itself and whether the energy boom is beginning to disrupt the inflation and interest rate narrative. (Arl)
Source: Newsmaker.id
