The S&P 500 kicked off the week on a strong note, climbing over 1.1% in Monday morning trading as investor sentiment improved amid easing geopolitical concerns and optimism ahead of the Federal Reserve’s upcoming policy meeting.
Calmer expectations around Middle East tensions helped ease fears of broader market disruption. As a result, oil prices retreated from last week’s highs, with WTI crude dipping but still holding above $71 per barrel. This cooling in energy prices gave markets further room to rally.
The broader U.S. equity market reflected the shift in sentiment. The Nasdaq Composite surged 1.5%, while the Dow Jones Industrial Average rose more than 480 points, or 1.16%. Gains were widespread, with every sector of the S&P 500 trading in positive territory.
Technology stocks led the charge, up 1.1%, fueled in part by Meta Platforms’ announcement of plans to introduce ads on its WhatsApp platform. Meta stock jumped 2% in early trading, helping lift the tech-heavy Nasdaq.
Travel and consumer names that struggled last week also rebounded strongly, with companies like Nike and Goldman Sachs among the day’s top performers. Intel also saw notable gains, contributing to broader tech momentum.
While investors remain encouraged by the market’s resilience, all eyes now turn to the Federal Reserve. The central bank’s two-day FOMC meeting begins this week, and markets are watching closely for any signals on interest rate changes.
Recent data showing slowing inflation could open the door to future rate cuts, though most economists expect the Fed to hold steady for now. Wells Fargo analysts describe the situation as a “holding pattern,” noting that the Fed may wait for more definitive signs of economic direction before making a move.
Despite global uncertainties, Monday’s market action suggests growing investor confidence that current risks are manageable — at least for now.