New York, June 1, 2026, 16:02 EDT
- The S&P 500 and Nasdaq opened higher, mostly on gains from tech stocks.
- Nvidia moved higher after it unveiled a new PC chip for AI, working with Microsoft.
- Oil’s rebound held gains tight and turned attention to Friday’s jobs report.
Stocks in the U.S. finished up Monday, with the S&P 500 and Nasdaq close to new highs. Nvidia led tech shares higher, but gains were capped as higher oil prices pressured the rest of the market.
S&P 500 rose 0.43% to 7,612.53, Nasdaq Composite gained 0.68% to 27,155.09 and the Dow Jones Industrial Average edged up 0.11% to 51,089.09, according to latest LSEG data published by Reuters. Brent crude moved up 4.25% to $94.99. The 10-year Treasury yield was at 4.469%.
The equity rally is looking to build on a record May as the Middle East conflict sparks another round in the inflation trade. Oil prices climbing can raise shipping and production costs, which in turn push up bond yields. Higher yields drag down the present value of future corporate profits.
Oil prices are keeping the market on edge, Matthew Keator at the Keator Group told Reuters. Keator said equities have been reacting directly to changes in the Iran conflict.
Tech led the market again. Nvidia jumped roughly 5.9% in late hours after it introduced a new chip designed to bring artificial intelligence into PCs—software and hardware that can handle tasks that once required human thinking. Microsoft, which is working with Nvidia on the effort, gained about 2.6%.
Nvidia CEO Jensen Huang said the Microsoft deal aims to “reinvent the PC” for AI, Reuters reported. Peers had mixed moves: Micron jumped 6.1% and went over $1,030, while Qualcomm fell 8.7%. Reuters
Tech and energy were the only S&P 500 sectors in the green, with utilities lagging, according to Reuters. The market rally stayed narrow. More stocks fell than rose on the NYSE, so market breadth was weak.
Oil’s jump weighed on fuel-sensitive stocks. AP said United Airlines dropped 2.1%, and Alaska Air Group slid 3% while Brent crude was up. Lower yields from highs in the session let small-cap shares pick up from earlier losses.
Investors started the session on edge as new U.S.-Iran headlines hit and reports circulated about Iran halting talks with Washington. NYSE market strategist Eric Criscuolo said stocks came back late in the day, with oil and rates pulling back from earlier peaks after President Donald Trump spoke and news broke of possible mediation.
Soft economic numbers kept investors from piling into the rally. U.S. manufacturing grew for the fifth month in a row in May, Reuters said. Now traders are waiting for Broadcom’s report out Wednesday and Friday’s jobs report to get a better sense of growth and AI demand.
The same forces pushing up the index could also leave it vulnerable. AP quoted Thomas Carroll, equity market strategist at Stifel, who said the top 10 stocks now make up almost half of the S&P 500’s value, the highest in four decades. If money moves out of Big Tech, index funds could take a hit, even if other stocks get stronger. Carroll said a breadth indicator he watches “is signaling a rotation is coming.” AP News
Can the rally hold? That was in focus as markets headed into Monday. “The rally has been largely tech-led and supported by resilient earnings,” Edward Jones senior global strategist Angelo Kourkafas wrote Friday. “But the key question is whether it can be sustained.” AP News
