Wall Street advances driven by technology; Middle East conflict limits gains

The Nasdaq, with its strong technological focus, led the major Wall Street indices higher on Monday, with Meta among the top gainers following reports that the giant is preparing for massive AI-related layoffs, while the conflict in the Middle East dampened risk-taking.

Meta rose by 2.6% after Reuters reported the company plans to cut its workforce by 20% or more to offset costly investments in AI infrastructure and to prepare for increased efficiency brought by AI-assisted workers.

AI is expected to remain in the spotlight this week, as the CEO of chip giant Nvidia is set to unveil new chips and software during the company’s annual developer conference later in the day. The chip manufacturer saw a 2.6% increase.

Taiwanese electronics giant Foxconn, the largest server manufacturer for Nvidia, announced strong quarterly revenue forecasts on Monday.

All 11 sectors of the S&P 500 were up, with technology leading the way with a 1.8% increase.

Tesla climbed 2.1% as Elon Musk announced the company’s Terafab project to manufacture AI chips will be launched in seven days.

Meanwhile, chip manufacturer Micron surged 6.3% following the announcement of the company’s plans for a second production site in Taiwan.

A slight drop in oil prices, after the US announced it would not oppose the passage of certain Iranian, Indian, and Chinese vessels through the Strait of Hormuz, also provided some relief to the market.

The impact of rising energy costs is expected to feature prominently in global central bank meetings this week. The Federal Reserve is evaluating tariff costs and signs of weakening job market before deciding on interest rates at its next meeting.

“At 11:45 a.m. ET, the Dow Jones Industrial Average gained 485.19 points, or 1.04%, to 47,040.91, the S&P 500 progressed 77.06 points, or 1.15%, to 6,708.70, and the Nasdaq Composite added 316.56 points, or 1.43%, to 22,420.61.

Wall Street’s fear gauge, the CBOE Volatility Index, dropped 3.47 points to 23.72, while the rate-sensitive Russell 2000 index gained 1.4%.”

CONTEXT: The article reports on the performance of the stock market indices and key companies in relation to developments in the technology sector and geopolitical issues. FACT CHECK: The information provided is accurate and reflects recent developments in financial markets.