Wall Street closed slightly higher on Monday, driven by energy and industrial stocks. Investors continued buying technology and AI-linked stocks even as inflation-related concerns remained regarding the U.S.-Iran diplomatic stalemate. All three benchmark indexes ended in the green.

How Did the Benchmarks Perform?

The Dow Jones Industrial Average (DJI) rose 0.2%, or 95.31 points, to close at 49,704.47. Seventeen components of the 30-stock index ended in negative territory, while 13 ended in positive.

The tech-heavy Nasdaq Composite added 27.05 points, or 0.1%, to close at 26,274.13.

The S&P 500 gained 13.91 points, or 0.2%, to close at 7,412.84. Six of the 11 broad sectors of the benchmark index closed in the green. The Energy Select Sector SPDR (XLE), the Materials Select Sector SPDR (XLB) and the Industrials Select Sector SPDR (XLI) advanced 2.6%, 1.4% and 1%, respectively, while the Communication Services Select Sector SPDR (XLC) declined 2.3%.

The fear gauge CBOE Volatility Index (VIX) increased 6.9% to 18.38. A total of 21.4 billion shares were traded on Monday, higher than the last 20-session average of 18 billion. Decliners outnumbered advancers by a 1.08-to-1 ratio on the NYSE, and by a 1.27-to-1 ratio on the Nasdaq.

Wall Street Edges Higher Despite Iran-Driven Oil Fears

U.S. stock markets posted marginal gains on Monday, even as rising geopolitical tensions kept investors cautious. Markets were rattled after President Donald Trump dismissed Iran’s response to a U.S. peace proposal, triggering a sharp rise in crude oil prices. Investors worried that a prolonged conflict in the Middle East could keep inflation elevated, especially through higher gasoline prices that continue to pressure consumers.

Despite these concerns, the three major benchmark indexes managed to finish modestly higher as investors continued pouring money into energy and artificial intelligence (AI)-related stocks. Energy companies benefited directly from the spike in oil prices, while technology and semiconductor firms attracted buying interest on expectations that AI-driven demand will remain strong throughout 2026.

The market also drew support from resilient corporate earnings and confidence that the U.S. economy can withstand temporary geopolitical shocks. However, trading remained cautious as investors balanced optimism surrounding AI growth against fears that persistent inflation could delay future interest-rate cuts by the Federal Reserve.

Oil prices climbed nearly 3% on Monday after President Donald Trump warned the Iran ceasefire was “on life support,” raising fears over prolonged disruption in the Strait of Hormuz. Brent crude settled at $104.21 per barrel, while WTI ended at $98.07 per barrel after both benchmarks touched multi-month intraday highs.

Consequently, shares of Exxon Mobil Corporation (XOM Quick QuoteXOM - Free Report) and Phillips 66 (PSX Quick QuotePSX - Free Report) added 3.5% and 2.2%, respectively. Both currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

AI Enthusiasm Supports Wall Street Gains

Wall Street also drew momentum from investor optimism surrounding AI that continued to boost technology and semiconductor stocks. Traders remained confident that strong demand for AI infrastructure, advanced chips and cloud computing would drive earnings growth in 2026. The upbeat sentiment helped offset concerns over rising oil prices and geopolitical tensions linked to Iran. Investors largely favored growth and AI-related shares, keeping the Nasdaq and other benchmark indexes in positive territory despite broader market uncertainty.

Economic Data

Per the National Association of Realtors, Existing Home Sales for April came in at 4.02 million units sold against a consensus of 4.11 million units. The number for March was revised up to 4.01 million units sold from the previously reported 3.98 million units.