U.S. stocks began the week higher as signs of easing tensions between the United States and Iran helped draw investors back into equities, while a sharp drop in oil prices lifted expectations for lower costs across several sectors.

Technology, financial and consumer stocks all advanced. Demand for safe-haven assets declined as the perceived risk of a broader Middle East conflict appeared to ease. The move followed weeks of uncertainty that had kept many investors cautious.

Brent Crude Posts Sharp One-Day Decline

Brent crude recorded one of its steepest single-day drops of the year after fears eased over possible disruption to shipping through the Strait of Hormuz, a key route for global oil and liquefied natural gas shipments.

Lower oil prices can reduce costs for companies in transport, manufacturing and retail. They also tend to ease inflation pressure, which can give central banks more flexibility on interest rates.

If crude prices remain lower into the second half of the year, cheaper energy could continue to support business margins and market confidence. Energy markets remain closely tied to geopolitical headlines, so traders are still watching shipping security and supply conditions in the Gulf.

Nvidia Reportedly Supports $250 Billion OpenAI Data Center Project

Nvidia is reportedly helping finance a large OpenAI data center project in Ohio. According to reports, the deal is valued at up to $250 billion.

The project would increase AI computing capacity as demand grows for advanced artificial intelligence models and cloud services. Large data center buildouts require chips, networking equipment, power access and cooling systems, making AI infrastructure a major focus for technology suppliers and utilities.

Nvidia’s reported role places the company deeper inside AI infrastructure, extending beyond chip design into the physical systems that support artificial intelligence workloads.

Microsoft, Apple, Amazon and Meta Set to Report Earnings

This week is one of the busiest periods of earnings season, with Microsoft, Apple, Amazon and Meta all scheduled to report results in the coming days.

Investors are watching cloud growth, advertising revenue, AI spending and guidance for the rest of 2025. After mixed reactions to earnings from Alphabet and Tesla, forward guidance is being closely monitored.

Results from the four large technology companies could influence the broader market as trading moves toward August. Their updates are also expected to give investors a clearer view of how much major platforms are spending on AI infrastructure and whether that spending is translating into revenue growth.

Airline Stocks Climb as Fuel Prices Fall

Airline shares were among the strongest performers of the day. Delta Air Lines, United Airlines and American Airlines all rose as oil prices declined.

Fuel is one of the largest expenses for airlines, so lower crude prices can quickly improve profit expectations if passenger demand remains strong.

The move into airline stocks showed how quickly market leadership can shift when energy prices change. For airlines, investors are also watching whether lower fuel costs can offset other operating pressures such as labor, maintenance and airport expenses.