India, Mar 17 ; Wall Street ended sharply higher on Monday, led by strong performances in AI-related stocks, while easing crude prices offered relief amid lingering Middle East tensions.
The Dow Jones climbed 387.94 points, or 0.83%, to 46,946.41. The S&P 500 gained 69.92 points, or 1.05%, to 6,702.18, and the Nasdaq advanced 268.82 points, or 1.22%, to 22,374.18.
Meta Platforms surged following a report that it plans workforce reductions of at least 20% to improve efficiency and offset rising costs from AI infrastructure investments. Chipmaker Nvidia rallied after CEO Jensen Huang unveiled new AI components at the company’s annual developer conference. Meanwhile, Foxconn forecasted robust quarterly revenue, driven by its AI server production using Nvidia chips.
Tesla gained after CEO Elon Musk announced the launch of its Terafab AI chip project within seven days, while Micron Technology jumped on plans for a second manufacturing facility in Taiwan.
Oil prices retreated slightly after U.S. officials indicated approval for Iranian, Indian, and Chinese vessels to transit the Strait of Hormuz, easing some investor concerns about global energy supply. “News of tankers moving through the Strait of Hormuz is positive for global economic stability,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.
Market attention now turns to the Federal Reserve’s two-day meeting, with expectations of unchanged interest rates. Traders have delayed anticipation of a 25 basis point cut until after October, reflecting continued sensitivity to oil price swings and the Fed’s messaging under Chair Jerome Powell.
Other market highlights included gains in travel stocks Delta Air Lines and Norwegian Cruise Line Holdings, supported by lower energy costs. Crypto related Strategy Inc rose as Bitcoin rallied 3%, and discount retailer Dollar Tree benefited from potential tariff advantages.
Despite recent declines over three weeks, U.S. equities have outperformed global peers, supported by a rebound in tech stocks and the country’s status as a net oil exporter. February industrial production increased 0.2%, slightly above expectations.