Nvidia Gains as Trump Rejects Iran Nuclear Offer
Nvidia Corporation shares rose on a massive stock buyback while U.S. markets declined following Donald Trump's rejection of an Iranian diplomatic offer.
U.S. stock and bond markets declined on Monday as oil prices surged following a diplomatic impasse. Donald Trump rejected an offer from Iran to reopen the Strait of Hormuz and resume nuclear program talks, causing Brent crude to rise 2.6% to $99.96 per barrel. The resulting inflation concerns pushed the 10-year Treasury yield to 5.27%, contributing to a 0.9% drop in the S&P 500 and a 1.2% decline in the Nasdaq composite.
Amid the broader market volatility, Nvidia Corporation climbed as much as 1.9% after announcing a stock buyback program totaling $235 billion, which included a $150 billion increase to its existing plan. The company also unveiled new AI safety and security software. While Nvidia gained, other semiconductor and AI-related stocks broadly declined.
Other sectors faced significant pressure. Rising fuel costs pushed major airlines lower, and gold miners sank as gold prices dropped. In the technology sector, MongoDB shares plummeted 19.9% following the immediate resignation of CEO Chirantan Desai, who departed the company to join Meta Platforms.
