Oil prices rise, but Wall Street still hangs near its records

U.S. stocks reached new highs on Monday as Wall Street largely shrugged off a 4.2% rise in oil prices to $94.98 per barrel, driven by escalating fighting that risks derailing the U.S.-Iran ceasefire. The S&P 500 added 0.3%, the Dow Jones Industrial Average rose 0.1% (46 points), and the Nasdaq climbed 0.4%, all extending record levels set earlier in the week. Oil’s increase—partially reversing last week’s losses—pressured airlines like United Airlines (-2.6%) and Alaska Air Group (-3.3%), which face higher fuel expenses, though broader inflation concerns and bond yields remained key market pressures. Nvidia’s stock surged 6.2% after CEO Jensen Huang unveiled product updates, lifting the S&P 500 as the tech giant’s market dominance amplifies its impact. The top 10 stocks now account for nearly half of the S&P 500’s total value, a 40-year high, according to Stifel strategist Thomas Carroll, who notes this concentration could hinder gains if leadership shifts away from Big Tech. Carroll’s analysis suggests market breadth indicators signal an impending rotation, which might weigh on the index if tech stocks stagnate. Smaller companies in the Russell 2000 index faced volatility, initially dropping 1.3% before recovering to a 0.5% loss, reflecting sensitivity to higher borrowing costs. Meanwhile, Science Applications International Corp. (SAIC) jumped 10.4% after reporting stronger-than-expected quarterly profits and raising forecasts, adding to a streak of positive earnings surprises that have supported market records despite geopolitical tensions. Investors remained hopeful for a U.S.-Iran deal to reopen the Strait of Hormuz, which could ease oil supply disruptions and inflationary pressures. Berkshire Hathaway fell 0.9% following news of a homebuilder acquisition, though its decline was minor compared to broader market strength. The day’s gains underscored Wall Street’s resilience amid conflicting signals—rising oil costs, geopolitical risks, and AI-driven tech rallies—leaving analysts divided on whether the current leadership can sustain momentum.