Stocks Rally as Oil Retreat Fuels Broad Market Rebound

U.S. stocks kicked off the week with a strong rebound, recovering a significant portion of last week’s losses as easing oil prices improved investor sentiment. The S&P 500 gained 1.0%, the Nasdaq Composite rose 1.2%, and the Dow Jones Industrial Average advanced 0.8%. Notably, the Nasdaq reclaimed its 200-day moving average after briefly closing below the level last week.

The rally was largely driven by relief in energy markets. Crude oil prices had surged above $100 per barrel last week amid escalating tensions in the Middle East, putting heavy pressure on equities. However, prices pulled back on Monday following reports that the U.S. is working to form a multinational coalition aimed at escorting commercial ships through the Strait of Hormuz.

According to reports, the announcement of the coalition could come as soon as this week. Optimism that shipping traffic through the critical waterway could resume more smoothly helped oil prices decline despite continued volatility. Crude oil futures ultimately settled down 5.4% at $93.35 per barrel.

The drop in oil prices sparked broad buying across equities, with all eleven S&P 500 sectors finishing the day in positive territory.

Technology stocks led the advance. Semiconductor companies posted strong gains, pushing the broader chip sector higher. NVIDIA drew significant attention after CEO Jensen Huang delivered his keynote address at the company’s GTC conference. Huang said he now expects cumulative purchase orders for the company’s next-generation Blackwell and Rubin systems to reach at least $1 trillion by 2027—double the level he projected just a year ago.

Memory-chip manufacturers were among the session’s top performers. SanDisk and Western Digital both posted sizable gains, while Micron Technology also advanced ahead of its upcoming earnings report. The broader semiconductor index finished the day solidly higher.

Artificial intelligence headlines also supported large-cap tech. Meta Platforms gained after reports indicated the company may cut up to 20% of its workforce as it reallocates spending toward AI investments.

Consumer discretionary stocks also delivered strong performance. Amazon moved higher after comments from NVIDIA’s CEO suggesting that OpenAI will integrate more closely with Amazon Web Services infrastructure. Travel-related companies also benefited from the drop in oil prices, with cruise operators such as Norwegian Cruise Line Holdings and airlines like United Airlines posting solid gains.

Elsewhere, the industrials sector moved higher alongside transportation stocks, while the broader market participated in the rebound.

Not all stocks shared in the rally. Fertilizer producers The Mosaic Company and CF Industries fell sharply as supply disruption concerns tied to the Strait of Hormuz eased, reversing some of the previous week’s gains.

Consumer staples stocks lagged the market overall, although Dollar Tree surged after reporting slightly better-than-expected earnings and issuing an encouraging comparable-sales outlook.

Smaller companies also joined the rebound. The Russell 2000 rose 0.9% and the S&P MidCap 400 climbed 0.7%, reflecting broad participation in the recovery.

Overall, the session marked a meaningful rebound after last week’s selloff pushed major indices toward key technical levels. The retreat in oil prices encouraged investors to step back into risk assets, but geopolitical tensions remain unresolved. With the conflict involving Iran ongoing and the Federal Reserve set to announce its March policy decision later this week, markets may continue to experience elevated volatility in the near term.

Our FTInvest 11 model portfolio closed at 959.49, finishing the session almost unchanged (0.00%). The flat performance follows a series of declines last week, suggesting a temporary stabilization as the portfolio consolidates after the recent pullback from its all-time high of 1,039.51.

While momentum remains subdued, FTInvest 11 continues to hold onto a meaningful portion of its earlier gains in 2026. The portfolio’s disciplined, value-oriented framework remains central as it navigates this period of market volatility while maintaining focus on long-term performance.