Market Recap: S&P 500 Gains 1.01% as AI and Energy Sectors Surge; Nebius Group Spikes 14.96%

The U.S. stock market delivered a strong rebound on Monday, with the S&P 500 climbing 1.01% to its highest gain in five weeks as investors digested the easing of tensions in the Strait of Hormuz and a sharp drop in oil prices. The Nasdaq Composite surged 1.22% while the Dow Jones Industrial Average added 0.83%. Energy and tech were the standout performers, with crude oil rising 1.08% to $93.46 and the Information Technology sector up 1.47%. Meanwhile, AI and infrastructure stocks continued to lead the rally, driven by aggressive demand from hyperscalers and new strategic partnerships between chipmakers and cloud providers.

Hot Stocks

Tech Giants and AI Leaders

• Nebius Group (NBIS): +14.96%
• Arm Holdings (ARM): +5.14%
• Nvidia (NVDA): +1.65%
• Meta (META): +2.33%
• Microsoft (MSFT): +1.11%

Chinese ADRs and EVs

• Coupang (CPNG): +10.84%
• Li Auto (LI): +5.25%
• Tencent Music (TME): +6.34%

Energy and AI Infrastructure

• Tower Semiconductor (TSEM): +11.03%
• Ciena (CIEN): +7.85%
• Dollar Tree (DLTR): +6.42%

High-Volatility Movers

• TJGC Group (TJGC): -13.59%
• Urgent.ly (ULY): +164.53%
• HCW Biologics (HCWB): +81.19%

Analysts Opinions on the Market

Analysts are cautiously optimistic about the market’s near-term prospects, particularly in sectors like AI and energy. The Federal Reserve’s recent research highlighted the growing predictive power of platforms like Kalshi, reinforcing the market’s reliance on forward-looking indicators. Goldman Sachs emphasized healthcare and materials as overweight sectors, while cautioning against those tied to middle-income consumers. In the tech sector, TSMC is highlighted for its dominant position in AI chip production, and Micron is anticipated to deliver strong results following its recent capital expenditure and AI-focused production expansions. Overall, market analysts see strong momentum in AI infrastructure and energy, but remain cautious about potential headwinds from geopolitical uncertainty and rising interest rates.

Macro, Corporate, and Global Narratives

1. Trump Demands Help With Hormuz, Threatens More Kharg Strikes

President Donald Trump reiterated his calls for international support to secure the Strait of Hormuz, warning that delaying the summit with Chinese President Xi Jinping could affect diplomatic relations. The geopolitical tensions contributed to oil price volatility and impacted investor sentiment.

2. Trump Signals Coalition to Force Open Strait of Hormuz Is Not Ready Yet

U.S. President Trump expressed frustration that some countries are not joining a coalition to escort oil tankers through the Strait of Hormuz, a vital global oil transit route. The U.S. is seeking allies to restore oil exports through the strait to stabilize global markets amid a 40% surge in crude prices.

3. Nvidia Announces $1 Trillion AI Chip Demand Forecast for 2027

At Nvidia’s GTC 2026, CEO Jensen Huang announced that demand for the company’s Blackwell and Vera Rubin AI chips is expected to reach $1 trillion through 2027, up from a prior $500 billion estimate. This underscores the surging demand for AI infrastructure driven by both startups and large firms.

4. Federal Reserve Finds Prediction Markets Outperform Traditional Forecasting

A new Federal Reserve study found that prediction markets like Kalshi outperformed traditional forecasting methods in predicting key economic indicators like the CPI, unemployment, and the federal funds rate. This highlights the growing influence of real-time market intelligence in financial forecasting.

5. Meta Signs $27 Billion AI Infrastructure Deal With Nebius

Meta Platforms signed a five-year AI infrastructure agreement with Nebius Group, valued at $27 billion. This strategic move highlights the growing demand for AI processing power as cloud providers and tech giants invest heavily in expanding data center capacity.

6. Oil Prices Dip Below $100, Stocks Rise and Trump Pushes on Hormuz

Oil prices briefly fell below $100 a barrel as U.S. stocks rose. President Trump intensified pressure on allies to join U.S.-led efforts to protect shipping in the Strait of Hormuz, emphasizing the importance of regional security for global oil supply.