U.S. stocks experienced a mixed trading session as a ceasefire in Iran was overshadowed by skepticism surrounding the artificial-intelligence boom and the valuation of chip stocks. The Dow Jones Industrial Average saw a gain of 262.83 points, or 0.51%, closing at 52210.08. The S&P 500 registered a slight increase of 1.20 points, or 0.02%, ending at 7413.18. Conversely, the Nasdaq composite declined by 43.74 points, or 0.18%, to 24932.08.

President Trump's decision to avoid a significant escalation in military action against Iran, influenced by Pentagon concerns over munitions, contributed to a sharp drop in oil futures. U.S.-traded oil futures plummeted $6.70, or 7.5%, settling at $82.61 a barrel. This followed a surge in oil prices the previous week, with West Texas intermediate futures briefly exceeding $92 a barrel due to conflicts in the Strait of Hormuz and the Red Sea.

The energy shock continued to impact bond and equity markets on Monday, creating an atmosphere of uncertainty following the recent geopolitical developments and the ongoing debate about the sustainability of tech valuations.