US stocks edged higher on Monday, with semiconductors leading the way as oil prices climbed after President Trump dismissed Iran’s latest proposal to end the conflict. The Dow Jones Industrial Average rose almost 0.2% after an early drop, while the S&P 500 added nearly 0.2% to a fresh all-time high and the Nasdaq Composite gained almost 0.1% for another record close.
Micron surged to a record as chip-related stocks moved higher, keeping the market’s focus on the artificial intelligence trade that has carried the major averages to repeated highs. Friday had already ended with all three benchmarks at all-time highs, and Monday’s gains extended that run even as geopolitical concerns returned to the center of trading.
Iran reportedly delivered a revised proposal to US negotiators calling for an end to the prolonged conflict and the removal of sanctions on Tehran, according to Iran’s Tasnim news agency. Trump called the response “totally unacceptable” in a Truth Social post, and the reaction helped lift oil as investors weighed the risk that elevated energy costs could spill into other parts of the economy.
That is why this week’s April consumer and producer inflation reports will matter. Traders will be watching to see whether higher oil prices begin feeding broader price pressures just as the market is trying to extend a rally built on chip demand and confidence in artificial intelligence.
JPMorgan Private Bank added to that optimism on Monday, saying in its 2026 mid-year outlook that the “AI supercycle may just be getting started” and that the prevailing view has become “too pessimistic.” It recommended investing in the data center build-out, energy infrastructure and the hyperscalers, a sign that the firm sees the next leg of the trade spreading beyond chipmakers alone.
The question now is whether the market can keep climbing if geopolitical tensions keep oil elevated and inflation data comes in hot. For now, the answer on Monday was yes.
