To The Moon

U.S. stocks rallied Monday, snapping a three-week losing streak, as investors grew optimistic that efforts led by Trump could help reopen the critical Strait of Hormuz and ease pressure on global oil markets.

The Dow Jones Industrial Average rose 388 points, or 0.8%, while the $S&P 500(.SPX)$ gained 1.0%. The $NASDAQ(.IXIC)$ e led the advance, climbing 1.2%.

The rebound follows a difficult stretch in which all three major indexes fell to their lowest levels since November.

Top Gainer: $Ciena(CIEN)$ (+7.9%). Biggest Decliner: $Mosaic(MOS)$ (-5.6%)

Best Sector: Information Technology (+1.4%). Worst Sector: Consumer Staples (+0.1%).

Optimism Builds Around Oil Supply Relief

Oil

The rally was driven largely by hopes that global efforts could restore normal operations in the Strait of Hormuz, one of the world’s most important energy chokepoints.

Roughly 20% of global oil supply passes through the narrow shipping route, making it a key driver of market sentiment since the Iran conflict began.

Strategists believe the current disruption may not last indefinitely.

Oil Remains the Market’s Main Driver

Despite Monday’s rally, analysts caution that oil prices will continue to dictate market direction.

The recent surge in oil prices has been the dominant force behind market volatility, with equities often moving inversely to crude prices.

Investors Remain Cautious

While sentiment improved, some strategists warn that recent rallies have been short-lived.

Investors remain sensitive to headlines related to:

• Oil supply disruptions

• Military developments in the Middle East

• Policy responses from global governments

All Eyes on the Federal Reserve

Attention now shifts to the upcoming policy decision from the Federal Reserve.

The Federal Open Market Committee is widely expected to keep interest rates unchanged at 3.5% to 3.75% at the conclusion of its meeting Wednesday.

However, the outlook remains uncertain.

1. Oil price volatility could quickly alter the Fed’s policy stance

2. Markets may discount guidance from Fed Chair Jerome Powell, as his term nears its end

Tech Sector Back in Focus Amid AI Spending Boom

While oil and geopolitics dominate headlines, technology stocks are quietly regaining attention.

Shares of $NVIDIA(NVDA)$ rose as the company kicked off its global artificial intelligence conference, highlighting continued investor enthusiasm for AI-driven growth.

$NVDA

Meanwhile, $Meta Platforms, Inc.(META)$ gained following reports that it could cut up to 20% of its workforce.

$META

Analysts estimate such cuts could generate $5 billion to $6 billion in annual savings, according to JPMorgan.

However, those savings may be modest compared to Meta’s massive AI investments, with total projected expenses reaching up to $169 billion this year.

The trend underscores a broader shift:

• Rising AI investment

• Increasing pressure on white-collar jobs

• A growing focus on efficiency over workforce expansion

Earnings Reports

• DocuSign

• Lululemon Athletica

• Oklo

Economic Data

• Pending home sales from the National Association of Realtors

Economists expect a 0.5% monthly decline, following a 0.8% drop in January.

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This summary is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making investment decisions.

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