Dow, S&P 500 hit record highs as Nvidia rally offsets oil surge

US stocks advanced on Monday, with the S&P 500 and Nasdaq Composite reaching fresh record highs as gains in technology shares helped offset concerns about rising oil prices and renewed uncertainty surrounding US-Iran negotiations.

The S&P 500 rose 0.27% to close at 7,600.03, while the Nasdaq Composite gained 0.43% to 27,087.37.

The Dow Jones Industrial Average added 44.70 points, or 0.09%, to finish at 51,076.85.

All three major indexes reached new intraday records during the session.

Investors weighed developments in the Middle East alongside strong performance from technology stocks, particularly Nvidia, whose latest artificial intelligence-related product announcement boosted sentiment across the sector.

Nvidia leads technology higher

Nvidia shares climbed 5% after unveiling a new processor designed for personal computers that brings artificial intelligence capabilities directly to PCs.

The company said the chip is the result of a three-year partnership with Microsoft aimed at helping "reinvent the PC" for the AI era, according to Nvidia Chief Executive Jensen Huang.

The announcement lifted other companies tied to the personal computer market.

Dell Technologies surged more than 10%, while HP gained over 8%. Microsoft also moved higher.

The reaction across semiconductor stocks was mixed.

Intel fell roughly 5%, while Qualcomm also declined. The broader Philadelphia Semiconductor Index advanced.

Software stocks also rebounded after facing pressure earlier this year amid concerns that AI could disrupt traditional software business models.

ServiceNow and IBM posted gains, while Cadence Design Systems jumped after launching an Nvidia-powered AI agent for chip design.

Broadcom's upcoming earnings report on Wednesday is expected to attract investor attention following signs of strong demand for AI-related infrastructure and servers.

Oil prices jump amid Iran tensions

Energy shares were the only other S&P 500 sector to finish in positive territory.

Marathon Petroleum gained 3%, while Exxon Mobil and Chevron rose 2% and 1%, respectively, as crude prices rallied.

West Texas Intermediate crude futures climbed 5.93% to settle at $92.54 a barrel. Brent crude rose 4.24% to settle at $94.98 a barrel.

The gains followed reports from Iranian state media that Tehran was suspending communication with the United States and would close the Strait of Hormuz in response to Israeli attacks on Lebanon.

President Donald Trump offered mixed signals on the status of negotiations.

"I really don't care. I couldn't care less," Trump told CNBC when asked about the possibility that peace talks with Iran had ended.

Later, Trump wrote on Truth Social that he "had a very productive call" with Israeli Prime Minister Benjamin Netanyahu and added that "there will be no Troops going to Beirut, and any Troops that are on their way, have already been turned back."

In another post, Trump said talks with Iran "are continuing, at a rapid pace."

Investors focus on economic outlook

Markets also continued to assess the broader implications of the conflict for inflation and economic growth.

US factory activity expanded in May for a fifth consecutive month despite ongoing tariff and geopolitical challenges.

Despite the uncertainty, investors appeared confident that the conflict would not return to the levels seen earlier in the year.

Attention is now turning to Friday's US jobs report and the upcoming Federal Reserve policy meeting, both of which could influence the next move for markets after another record-setting session on Wall Street.