Stocks Experience Mixed Trading, With Tech Sector Showing Signs of Recovery, Amid Rising Oil Prices

Global Markets Ease as Investors Assess Iran War Progress

Major stock indexes largely declined on Monday as technology shares fell, while Brent oil prices surged to a two-week high. The Dow Jones Industrial Average rose 159.95 points, or 0.32%, to 49,686.12, but the S&P 500 fell 5.45 points, or 0.07%, to 7,403.05, and the Nasdaq Composite dropped 134.41 points, or 0.51%, to 26,090.73.

The recent rise in Brent oil prices, which gained $2.84 to $112.10 - its highest close since May 4 - was driven by investors' assessment of the Iran war's impact on global energy costs. U.S. crude oil prices also rose, adding $3.24 to settle at $108.66 a barrel.

Market Trends

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The decline in technology shares, which fell 1% and led sector declines in the S&P 500, was partly attributed to profit-taking by investors. Technology, down 1%, was also hurt by the recent rise in interest rates, which adds to investors' worries about the sector's performance.

The recent rise in interest rates has pushed up borrowing costs and challenged stock valuations. The yield on the benchmark 10-year Treasury note climbed to 4.659% in overnight trading, its highest level since February 2025, before retracing its gains and ending nearly flat at 4.591%.

Global Market Outlook

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The pan-European STOXX 600 index rose 0.54%, while MSCI's gauge of stocks across the globe fell 0.77 points, or 0.07%, to 1,098.23. Japan's 10-year yield hit a peak not seen since 1996, while Germany's 10-year bond yield rose to a level not seen in 15 years.

Earnings and Economic Data

The artificial intelligence trade will be tested by earnings results from Nvidia due on Wednesday, with expectations high for the world's most valuable company. A U.S. jury on Monday ruled against Elon Musk in his lawsuit against OpenAI, finding the AI company not liable to the world's richest person for having allegedly strayed from its original mission to benefit humanity.

Retailers, including Walmart, will also report earnings this week, providing insight into how consumers are faring with high energy prices. The dollar slipped against most major currencies as U.S. Treasury yields were off recent high levels, and spot gold rose 0.61% to $4,565.54 an ounce.