U.S. stocks were little changed on Monday as investors balanced rising oil prices against a stronger tech sector led by Nvidia. The S&P 500 and Nasdaq Composite hovered near the flatline, while the Dow Jones Industrial Average slipped 66 points, or 0.1%.
Energy prices moved sharply higher at the start of the week after fresh geopolitical tension raised concerns about supply routes. West Texas Intermediate crude futures jumped 7% to around $93 a barrel, while Brent crude rose 6% to around $96.
Oil market pressure adds to investor caution
The jump in crude came as Iranian state media reported that the country’s negotiators were cutting off communication with the U.S. and that Tehran could shut the Strait of Hormuz. That route is one of the most closely watched chokepoints in global energy trade, so any threat to it tends to ripple quickly through markets.
The oil rally followed a volatile stretch for the U.S. benchmark, which had posted its steepest monthly decline since April 2025 in May, falling nearly 17%. Traders have been watching whether the latest developments could keep energy prices elevated and add to inflation concerns.
Geopolitical headlines remain in focus
Weekend developments in Lebanon also kept risk sentiment fragile. Israeli Prime Minister Benjamin Netanyahu praised forces after they captured Beaufort castle in southern Lebanon, as troops pushed further into the country.
At the same time, tensions between the U.S. and Iran escalated further. U.S. Central Command said Monday that American forces intercepted two Iranian ballistic missiles overnight that were aimed at U.S. forces in Kuwait.
Nvidia helps keep tech shares supported
Even with broader market caution, Nvidia gave the technology sector a lift after unveiling a new processor for personal computers. The stock rose more than 3%, helping offset some of the pressure from weaker energy-sensitive names and other defensive moves in the market.
Dell Technologies climbed more than 5% and HP Inc. gained about 3% after Nvidia’s product launch, while Intel dropped more than 4%. The move underscored how closely investors are tracking the PC chip market and how quickly company-specific announcements can shift sentiment within the sector.
Markets end a strong May on solid footing
The latest session followed a strong month for equities, with all three major indexes finishing May with gains. The Nasdaq Composite led the way with a rise of more than 8%, the S&P 500 added about 5%, and the Dow Jones Industrial Average gained nearly 3%.
Stocks had closed at fresh highs on Friday after the U.S. and Iran reached a 60-day memorandum of understanding to extend the ceasefire. But markets remained sensitive to any sign that diplomacy could stall or that military risks could widen again.
President Donald Trump said he would meet in the Situation Room “to make a final determination” and repeated that Iran “must agree that they will never have a Nuclear Weapon.” He also said the Strait of Hormuz should be “immediately open,” reinforcing the market’s focus on both security and energy flow.
Adam Crisafulli, founder of Vital Knowledge, said in a note that “Trump clearly doesn’t want to escalate and is looking for an off-ramp.” He added that “some type of a pact is very likely,” while noting that an actual announcement could still spark a “sell the news” reaction in the broader S&P 500.
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