The Nasdaq increased by 0.8%, reaching a session high. The index rose 149 points to 19,391, aiming for the highest close since February, though it remains slightly below last week’s intraday peak.

Nvidia shares climbed 3.2%, driven by optimism about its ability to export chips to China. The positive sentiment extends to other chipmakers due to advancements in AI technology. Additionally, power and utility stocks see benefits from Meta’s deal with Constellation, suggesting increased demand for AI power.

Energy Stocks Demonstrate Strength

Energy stocks showed strength, supported by crude oil rising $1.23. This marks the second consecutive day of gains following an OPEC production boost.

We’ve seen a meaningful uptick in Nasdaq, rising 0.8% on the session. That’s 149 points added, taking the index to 19,391—its highest session finish since February. However, it’s not quite above the top it hit last week during the day. That suggests momentum is returning but hasn’t fully broken out yet.

Nvidia, in particular, advanced by more than 3%, with the rally fuelled by hope around chip sales to China. According to Huang, chip availability for that market remains complex, yet investors seem to believe restrictions could ease or at least become more predictable. That belief helped similar firms move higher. What we’re seeing here is not just optimism about one export channel, but broader enthusiasm surrounding AI-related revenue prospects. Jensen’s outlook on data centre growth seems to be lending weight to that move.

Meta’s new electricity supply agreement with Constellation raised attention in an area we usually don’t link directly with tech—utilities. That contract suggests large-scale AI applications will require far more power than previously built into demand models. For those of us trading derivatives tied to sectors like utilities or energy infrastructure, that kind of forward demand shift cannot be ignored. Short-term volatility may come, but exposure to power producers with long-dated contracts or flexibility in capacity could benefit from this change in forecasted load.

OPEC’s Impact on Oil Prices

Oil’s two-day climb, now totaling more than $2 a barrel, is rooted in supply-side action. OPEC’s decision to widen output provides bullish sentiment, despite broader demand forecasts remaining stable. Some traders might want to be cautious about chasing that near-term rally, especially if inventory data later this week starts showing differing trends. Still, integrated producers and commodity-tied currencies reacted in tandem.

From where we sit, it’s not about picking the fastest-moving stock or commodity—it’s about understanding which sectors are showing structural strength. Those relying on increasing infrastructure or specialized technology exposure may see more resilient movement, particularly as enthusiasm spreads to supporting sectors. In this context, tailwinds in energy and semiconductors aren’t coincidental—they appear interlinked through how artificial intelligence permeates everything else.

What makes Derivatives particularly interesting right now is the way these themes cluster. When sentiment holds up in more than one market segment—rather than jumping chaotically—our models tend to pick up more predictive power. For those holding directional exposure, understanding the specific catalysts in sectors like chips and oil helps sort noise from signal. The role of policy in China, AI server demand, and agreements in energy supply—each of these contributes measurable, separate force.

Watch volatility linked to end-of-quarter fund positioning. Futures and swaps pricing may become choppy toward the end of the trading month. It’s worth recalibrating exposure, especially when assumptions around demand elasticity and supply control mechanisms (like OPEC coordination) start getting priced in more aggressively.

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