The S&P 500 Index closed up 1.02% on Monday, reaching a five-week high, while the Nasdaq 100 gained 1.06%, marking its highest level in 1.5 months. The rally was largely driven by a significant 12% jump in Oracle’s stock, which spurred gains across the software sector and prompted short covering in the broader market. This positive momentum came despite initial losses tied to rising crude oil prices following President Trump’s announcement of a naval blockade in the Strait of Hormuz.

The market’s reaction underscores the delicate balance between geopolitical tensions and earnings expectations, particularly as the upcoming earnings season kicks off with projections for a 12% year-over-year increase in S&P 500 earnings. However, excluding the tech sector, earnings growth is expected to slow to just 3%, the weakest in two years, which could temper investor enthusiasm.

As geopolitical developments continue to influence market volatility, professionals should monitor how these tensions affect oil prices and broader economic indicators, especially with earnings reports from major banks set to shape market sentiment this week.

Source: nasdaq.com