NEW YORK, May 11, 2026, 16:03 EDT
- Dow Jones tacked on roughly 100 points. S&P 500 and Nasdaq ended the session up as well.
- Chip stocks tied to AI took the lead, helping counter new jitters over oil prices and inflation.
- Attention shifts to the CPI as traders look for evidence that higher energy costs are starting to affect overall prices.
Stocks edged up Monday, with the Dow Jones Industrial Average picking up about 100 points after the close. Wall Street clung to slim gains despite rising crude and a lack of progress in U.S.-Iran talks. Early figures had the Dow advancing 100.46 points, or 0.20%, to 49,709.62. The S&P 500 ended up 0.20% at 7,413.55, and the Nasdaq Composite posted a 0.10% rise to 26,272.96. MarketScreener
This shift carries weight—not merely a reaction to earnings season anymore. Now, investors weigh whether solid profits and the AI trade have enough momentum to push stocks higher, even as pricier oil chips away at margins, pressures consumer wallets, and complicates the Fed’s fight with inflation.
Chip stocks led the charge. According to Reuters, semiconductor names outpaced the wider market. Ross Mayfield, investment strategy analyst at Baird, called the “semis and AI infrastructure trade” something that’s “taken on a life entirely of its own.” MarketScreener
The Dow managed a lift, but tech-focused stocks outpaced its gains. According to MarketScreener, the Dow ticked up 0.19% just after the close, while the S&P 500 and Nasdaq Composite were also in positive territory late in the session. MarketScreener
Earnings are still the solid spot here. Out of 440 S&P 500 companies reporting so far, 83% have topped estimates, LSEG IBES data cited by Reuters shows. Analysts are now projecting aggregate first-quarter S&P 500 earnings growth at 28.6% year on year—almost twice the 14.4% forecast made back on April 1. MarketScreener
“The strength of the rally largely is a function of earnings growth, which is superb,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, speaking to Reuters. Investors will be eyeing big-box retailers next week, he noted, as they look for any signs that higher gasoline prices are starting to affect consumer spending. MarketScreener
Chip stocks got a lift from a classic peer move. Intel climbed, building on Friday’s 14% surge after news broke of a provisional chip-manufacturing deal with Apple. Qualcomm touched an all-time high. Next up: Nvidia and Applied Materials are set to report, so the AI narrative isn’t going anywhere. MarketScreener
Oil is the wild card. President Donald Trump shrugged off Iran’s answer to a U.S. peace proposal, which, according to Reuters, sent crude prices climbing and reignited fears that a drawn-out conflict could stoke inflation—particularly at the pump. Investors now zero in on this week’s CPI and retail sales numbers, scanning for any sign that rising energy costs are spilling over into consumer prices or hitting demand. MarketScreener
Airlines took a hit. A handful of airline stocks dropped, pressured by higher oil prices and the risk of pinched margins, Reuters wrote—a clear example of how the same rally in crude that boosts energy names can end up weighing on transport and companies exposed to consumers. MarketScreener
The Dow eked out a gain, but conviction was lacking—traders chased earnings and AI names, just not aggressively. The session ended firmer, though the move felt more like a slog than a takeoff. With inflation numbers due Tuesday, the jury’s out on whether this uptick holds up.
