Stocks Rise on Oil Pullback and Diplomacy Hopes, but Technical Resistance Holds

U.S. equities posted broad gains as easing oil prices and tentative optimism around a potential U.S.–Iran diplomatic path supported risk appetite. The S&P 500 advanced 0.5%, the Nasdaq Composite gained 0.8%, and the Dow Jones Industrial Average rose 0.7%. Still, all three indices finished well below their intraday highs, with 200-day moving averages once again acting as firm resistance.

Early momentum was fueled by reports of a U.S. peace proposal to Iran, though enthusiasm faded as Iranian officials continued to deny that any negotiations are underway. Despite the conflicting headlines, the market found support from a decline in crude prices. Oil settled 2.1% lower at $90.33 per barrel after briefly dipping below $87 earlier in the session.

The pullback in energy prices weighed on the energy sector, which fell 0.5% and was the only S&P 500 sector to close in negative territory (real estate finished flat). Elsewhere, participation was notably broad, with nine sectors posting gains.

The materials sector led the advance, climbing 2.0% on strength across chemical and metals names. Newmont Corporation was among the leaders as gold prices rebounded sharply, with futures rising more than 3% on the day.

Consumer discretionary also outperformed, gaining 1.2% behind renewed strength in mega-cap names. Amazon provided leadership among the largest stocks, while Carvana benefited from lower Treasury yields. Travel-related stocks, particularly cruise lines, also moved higher as fuel cost pressures eased.

Technology stocks added to the upside, with the sector rising 0.6%. NVIDIA stood out among mega-caps, while chipmakers broadly advanced. Advanced Micro Devices and Intel posted strong gains, helping lift the semiconductor space, although weakness in memory names like Micron and Sandisk capped some of the upside after new AI-related efficiency developments raised concerns about future demand.

Hardware names also contributed to the sector’s strength, with Hewlett Packard Enterprise extending its recent rally.

In contrast, communication services lagged despite finishing slightly higher. Alphabet and Meta Platforms surrendered most of their early gains after reports that both companies were found liable in a high-profile social media addiction case, creating an additional overhang for the group.

Health care delivered a solid 1.0% gain, supported by strength in biotech and pharmaceutical names, as the iShares Nasdaq Biotechnology ETF advanced 2.5%.

Overall, the session reflected a constructive rebound driven by lower oil prices and residual dip-buying interest. However, the market’s inability to break above key technical levels—despite favorable intraday conditions—highlights lingering caution. With geopolitical signals still mixed and oil volatility unresolved, equities remain highly sensitive to incoming headlines and macro developments.

Our FTinvest 11 model portfolio gained 1.18% to close at 956.84, continuing its recovery from the recent correction. The portfolio has now built on consecutive gains, moving further away from last week’s lows, though it still remains below the all-time high of 1,039.51.

Based on the start-of-year level of 928.18, FTInvest 11 is now up approximately +3.09% year-to-date, reflecting a solid rebound in recent sessions. The improving momentum suggests stabilization after the March drawdown, with the portfolio’s disciplined, value-driven strategy continuing to support its recovery.