Meta and Nvidia lift markets as investors track Iran developments.
U.S. stocks rebounded on Monday as oil prices cooled slightly and investors attempted to recover from another week of losses tied to the ongoing Iran conflict. The Dow Jones Industrial Average rose 387 points while the S&P 500 gained 1.01% and the Nasdaq Composite climbed 1.22%.
The rebound followed three consecutive weeks of declines that pushed the S&P 500 to its lowest level of the year last Friday. Despite geopolitical tensions in the Middle East, the benchmark index remains only about 4% below its record high earlier this year.
Energy markets remained a key driver of sentiment. West Texas Intermediate crude fell 5.28% to $93.50 per barrel after briefly trading above $100 overnight. Brent crude also pulled back but stayed near the $100 level.
Oil prices eased after U.S. officials signaled that Iranian oil tankers may be allowed to pass through the Strait of Hormuz, while discussions continued about forming an international coalition to escort ships through the key shipping route.
Technology stocks helped lift the market. Meta Platforms (META) rose more than 2% following reports that the company may cut more than 20% of its workforce as part of cost restructuring tied to AI investments.
Meanwhile Nvidia (NVDA) gained more than 1% as its annual GTC conference kicked off, with investors watching for updates on the company’s AI roadmap and broader demand for data center chips.
📊 Market Wrap
🧠 Analyst Notes
💬 Market Highlights
Nebius Surges After Meta’s $27B AI Infrastructure Deal
Shares of Nebius (NBIS) jumped about 14% in premarket trading after Meta Platforms (META) committed up to $27B over five years for access to advanced AI infrastructure from the company. Under the agreement, Nebius will provide $12B in dedicated compute capacity across multiple locations based on large-scale deployments of Nvidia’s Vera Rubin platform, with delivery expected to begin in early 2027.
Meta has also committed to purchasing additional compute capacity from upcoming Nebius clusters worth up to $15B over the same period. The deal expands the partnership between the two companies following a $3B AI infrastructure agreement announced in 2025, while Nvidia recently revealed a $2B investment in Nebius to accelerate the expansion of large-scale AI infrastructure.
Micron Gets Bullish Outlook from RBC on ‘Memory Supercycle’
RBC Capital Markets raised its price target for Micron Technology (MU) to $525 from $425 while maintaining an Outperform rating, citing a potential “memory supercycle” driven by strong demand from artificial intelligence and data center markets. Analysts believe memory pricing strength could continue through 2026, supported by rising demand for high bandwidth memory used in AI GPUs and advanced computing systems.
Micron management recently indicated that its HBM capacity is already sold out for 2026, while the next-generation HBM4 product is expected to enter volume production in early 2026 with prices estimated to be 30% to 50% higher than the previous generation. RBC also noted that strong AI-driven demand could more than offset potential weakness in traditional PC and smartphone markets.
EU Groups Urge Regulators to Accelerate Google Investigation
European publishers, technology companies, and startup groups have urged EU regulators to speed up an ongoing investigation into Google (GOOG) (GOOGL) over allegations that the company favors its own services in online search results. The probe, launched in March 2024 under the Digital Markets Act, has been ongoing for nearly two years, prompting industry groups to call for a swift conclusion and potential fines.
In a joint letter to EU officials, the groups argued that Google’s practices are harming the profitability of European companies and limiting their ability to invest and grow, while pushing regulators to issue a formal non-compliance ruling against Alphabet.
📅 Earnings Watch
Developments in the Middle East, movements in oil prices, and updates from major technology companies are likely to remain key factors shaping market sentiment in the coming sessions.
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