2026.07.2713:34:24UTC+00US Stocks Rebound on Monday

US stocks rose on Monday, erasing the prior week’s losses as a decline in energy prices helped offset a weakening macroeconomic backdrop. The S&P 500 gained 0.8%, while both the Dow and the Nasdaq 100 advanced more than 1%. The US paused strikes against Iran over the weekend, and benchmark fuel prices retreated on hopes that energy exports from the Middle East might resume. The resulting drop in bond yields eased financial conditions and reinforced expectations that the Federal Reserve will hold rates steady this week, with any potential tightening now largely pushed back to September.

Megacap tech names were broadly higher, with Amazon, Meta, Microsoft, and Apple climbing as much as 2% ahead of their earnings reports in the coming days. Nvidia lagged the rally, slipping 0.5% after news of a $500 billion AI memory chip supply agreement with SK Hynix and a commitment of $250 billion to OpenAI for computing capacity from a data center project. The scale and structure of these arrangements revived concerns that circular financing and capacity deals in the AI-computing ecosystem could fuel contagion risks and potentially unwind the AI trade if capex growth slows or stalls.