Wall Street ended Monday with mixed results as oil and gas companies surged while technology giants faltered, leading to a split among major stock indexes. The gains in the energy sector, fueled by climbing oil prices, were offset by declines in the tech sector, weighed down by rising Treasury yields and valuation pressures.

The S&P 500 rose modestly by 0.2%, supported by energy sector strength, while the Dow Jones Industrial Average climbed 358 points, or 0.9%. The Nasdaq Composite, however, fell 0.4%, dragged lower by losses in leading technology stocks.

Energy Sector Powers Ahead

Oil prices rose above $80 per barrel, boosting shares of companies like Exxon Mobil and Valero Energy, which posted notable gains. The rally in crude prices was driven by expectations of tighter global supply and geopolitical concerns.

“Investors are rotating into energy stocks as a hedge against inflation and geopolitical risks,” said Sarah Harper, an energy market analyst at Wellspring Capital. “The oil market is reacting to renewed supply concerns, which have pushed prices higher.”

Tech Stocks Under Pressure

Big Tech stocks faced significant declines, with Nvidia falling 2% and Apple and Meta Platforms each losing around 1%. The sector’s struggles were linked to rising Treasury yields, which make future earnings less attractive for growth-focused companies.

“Higher yields are putting pressure on valuations, especially for tech stocks,” said David Conrad, a senior equity strategist at Innovate Capital Advisors. “The market is recalibrating as investors factor in the potential for prolonged higher interest rates.”

Broader Market Movements

While energy stocks advanced, other sectors delivered mixed performances. U.S. Steel jumped 6.1% after news of an extended deadline for its acquisition by Nippon Steel. Meanwhile, Moderna suffered a steep 16.8% drop following a disappointing revenue forecast.

In the bond market, Treasury yields continued their upward trajectory, with the 10-year yield nearing recent highs. Strong economic data, including robust job growth and consumer spending, has led to speculation that the Federal Reserve might keep interest rates elevated for longer than previously anticipated.

Investors Eye Key Data

Looking ahead, investors are focusing on key economic indicators and earnings reports due later this week. The upcoming inflation report and financial results from major banks are expected to provide further insight into the economy’s direction and the Federal Reserve’s policy outlook.

“This week’s data releases will be critical in shaping market sentiment,” said Elena Martinez, an economist at Horizon Analytics. “Investors are watching closely for signs of easing inflation and corporate resilience.”

Despite Monday’s mixed performance, analysts remain cautiously optimistic about the market’s prospects. However, ongoing uncertainties suggest that volatility may persist in the coming weeks.