Markets surged last week, pushing back into record territory as falling oil prices, easing geopolitical tensions, and strong leadership from mega-cap tech drove gains.

The Nasdaq jumped 6.8%, the S&P 500 rose 4.5%, and the Dow gained 3.2%. Small caps also participated, with the Russell 2000 up 5.6%, signaling a broader risk-on environment.

A major catalyst was the sharp drop in crude oil which closed down roughly $12 and settled below $85 at Friday’s close. This helped ease inflation concerns and improved expectations for potential rate cuts. At the same time, progress toward a U.S.–Iran de-escalation, including the reopening of the Strait of Hormuz, boosted investor confidence. However, over the weekend, the ceasefire and passage of the Strait became more uncertain.

Growth sectors led the rally. Technology surged over 8%, with software and semiconductors driving the AI trade higher. Consumer discretionary and communication services also posted strong gains. Meanwhile, energy lagged due to falling oil prices, and defensive sectors like utilities and staples underperformed.

Overall, the market remains well-supported by improving macro conditions, strong earnings expectations, and renewed leadership from growth stocks. Looking ahead, focus shifts to retail sales, PMI data, and a heavy slate of earnings as momentum continues into this week.