US stocks rebound as oil prices retreat, tech sector rallies

U.S. stocks ended higher on Monday as a pullback in oil prices and renewed strength in the technology sector lifted broader market sentiment.

The Dow Jones Industrial Average rose 0.83 percent to 46,946.41. The S&P 500 added 1.01 percent to 6,699.38. The Nasdaq Composite Index increased 1.22 percent to 22,374.18.

All 11 primary S&P 500 sectors ended in green territory. The technology and consumer discretionary sectors led the gainers, rising 1.39 percent and 1.34 percent, respectively. The consumer staples sector recorded the weakest growth, edging up 0.07 percent.

Wall Street continued to closely monitor developments in the Strait of Hormuz. However, oil prices experienced some relief after U.S. Treasury Secretary Scott Bessent indicated in an interview that the United States is permitting Iranian oil tankers to navigate through the critical waterway. Following the remarks, West Texas Intermediate crude for April delivery traded 5.28 percent lower to settle at 93.5 U.S. dollars a barrel.

The broader market rally was strongly supported by major technology equities. Nvidia gained 1.65 percent as its CEO Jensen Huang delivered remarks at the artificial intelligence leader's annual developer conference in California. Additionally, Meta Platforms advanced 2.33 percent following media reports suggesting the parent company of Facebook and Instagram is planning mass workforce reductions to offset substantial AI expenditures.

Dollar Tree rose 6.42 percent on Monday after the discount store operator reported an earnings beat but more cautious guidance than the Street anticipated. In a call with analysts, Dollar Tree CEO Michael Creedon said the retailer grew sales across all income levels, noting that more high-income consumers are shopping at the discount chain.

In the bond market, U.S. Treasury yields retreated ahead of the Federal Reserve's highly anticipated interest rate decision scheduled for later in the week. The yield on the benchmark 10-year U.S. Treasury note, which heavily influences consumer borrowing costs, fell to 4.224 percent from Friday's close of above 4.282 percent, stepping back from its highest closing level since late January.