Nasdaq 100: Semis Lead Tech Rally as US Stocks Respond to Falling Oil Prices

Wall Street Moves Higher Midday as Oil Drops and Fed Decision Looms

U.S. equities traded higher midday Monday, lifted by a sharp retreat in oil prices and growing expectations that the Federal Reserve will hold rates steady later this week. Traders showed renewed interest in risk assets after fears of supply disruption in the Middle East eased, calming energy markets.

By midday, the S&P 500 was up 0.87%, the Nasdaq had gained 1.11%, and the Dow rose 0.56%. Oil prices tumbled over 3% after reports indicated Iran was pushing for a ceasefire with Israel. Friday’s rally in crude, which saw gains of over 7%, had briefly reignited inflation fears and spooked equity markets.

Are Sector Moves Reflecting a Broader Risk-On Tone?

Yes—nine of the eleven major S&P sectors were in positive territory. Technology and financials led with gains of 1.7% each, pointing to broad-based buying interest. The Philadelphia Semiconductor Index added 3.1%, suggesting strength in growth-oriented names.

Energy, however, traded down 0.7% as falling oil prices weighed on the sector. The quick reversal from Friday’s rally signals that traders are de-risking exposure tied to geopolitical instability that has not yet translated into supply disruptions.

Which Stocks Are Drawing Trader Attention Mid-Session?

Semiconductor names led individual gainers. AMD spiked 9.5%, Super Micro Computer rose 5.8%, and Palantir gained 3.8%. Mega caps also contributed to the advance—Meta climbed 2.9% on new WhatsApp features, and Nvidia advanced 2.7%.

Elsewhere, U.S. Steel jumped 5.1% following Trump’s approval of Nippon Steel’s $14.9 billion acquisition. Cisco gained 2.3% after an upgrade from Deutsche Bank. UPS and FedEx edged higher by about 1% on logistics ties to the Trump Mobile launch.

Sarepta Therapeutics plunged 45% after disclosing a second patient death related to its gene therapy, weighing on biotech sentiment.

What Do Market Internals and Fed Outlook Say About Direction?

Market breadth was strong, with advancing stocks outpacing decliners by more than 3-to-1 on the NYSE and over 2.5-to-1 on the Nasdaq. The S&P 500 logged 16 new 52-week highs versus five lows.

All eyes now turn to the Fed’s Wednesday policy decision. Fed funds futures show a 56% chance of a 25-basis-point cut by September, with 48 basis points of total easing priced in for the year. Key data this week—retail sales, import prices, and jobless claims—will shape expectations.

Bullish Setup Into Fed Week?

So far, market action points bullish. Oil price relief and strong performance in semis and tech are supporting a midday bid. As long as geopolitical headlines stay contained and economic data holds steady, traders appear comfortable leaning into risk ahead of the Fed.

More Information in our Economic Calendar.