US stocks rise after oil prices give back some of their big gains

U.S. stocks experienced a surge on Monday after oil prices retreated slightly. The S&P 500 index managed to recover most of its losses from the previous week, bringing it within 1.6 percent of its all-time high set earlier in the month. The Dow Jones Industrial Average gained 242 points, or 0.5 percent, while the Nasdaq composite rose 1.3 percent by 11 a.m. Eastern time on Monday.

The relief for stocks stemmed from the sharp drop in the price of Brent crude, which fell by 1.4 percent to $110.17 per barrel. Despite this decline, it remains close to the upper range of its recent trading band since the conflict with Iran commenced. The highest price for the most actively traded Brent crude contract since the war began was around $120, achieved in March.

The easing of oil prices proved beneficial for companies with substantial fuel expenses, leading the market's upward movement. Royal Caribbean Group, a cruise-line operator, surged 2.1 percent, while United Airlines and Delta Air Lines each climbed 3.2 percent and 2.3 percent respectively. These airline stocks benefitted from speculation that they might profit from JetBlue Airways, whose shares plummeted 14.1 percent to approach a record low. The AI sector also continued to show strength.