The Nasdaq rose by 0.8%, hitting a session high. It gained 149 points, reaching 19,391, and is looking for its highest close since February. However, it remains just below last week’s highest point. Nvidia’s stock jumped 3.2% due to hopes about selling chips to China. This optimism also boosted other chipmakers because of progress in AI technology. Power and utility stocks are benefiting from Meta’s agreement with Constellation, indicating a rising need for AI-related energy.

Energy Stocks Show Strength

Energy stocks are performing well, supported by a $1.23 increase in crude oil prices. This is the second day of gains, following an increase in OPEC production. The Nasdaq has made a noticeable increase, up 0.8% in this session, adding 149 points to reach 19,391. This is its highest gain since February. Yet, it hasn’t surpassed last week’s peak, suggesting that while momentum is returning, it hasn’t fully broken out. Nvidia rose more than 3%, fueled by optimism about chip sales to China. According to Huang, the complexity of chip availability for that market still exists, but investors believe that restrictions could ease or become more predictable. This belief has helped boost similar firms. The excitement extends beyond just one export channel, as there’s a growing interest in AI-related revenue potential. Jensen’s comments on data center growth are also supporting this optimism. Meta’s new agreement with Constellation about electricity supply has drawn attention in a sector not usually associated with tech—utilities. This contract indicates that large AI applications will need significantly more power than earlier demand models predicted. For those trading derivatives linked to utilities or energy, this shift in demand forecasts is important. While short-term volatility may arise, power producers with long-term contracts or flexible capacity could benefit from this demand change.

OPEC’s Influence on Oil Prices

Oil prices have risen for two consecutive days, totaling more than $2 a barrel, driven by supply-side actions. OPEC’s decision to increase output has created positive sentiment, even though overall demand forecasts remain steady. Traders should be cautious about chasing this recent rally, particularly if upcoming inventory data reveals different trends. Still, integrated producers and commodity-related currencies reacted positively. The focus should be on identifying sectors with strong fundamentals rather than simply chasing the fastest-moving stocks. Sectors that are expanding infrastructure or specializing in technology may see more stable growth, especially as enthusiasm spreads. The growth in energy and semiconductors is not random—they are linked through the influence of artificial intelligence. Right now, what makes derivatives particularly intriguing is how these themes come together. When sentiment remains consistent across multiple market segments, our models tend to gain predictive strength. For those with directional exposure, understanding what drives sectors like chips and oil is vital to distinguish between noise and meaningful signals. Factors such as policies in China, AI server demand, and energy supply agreements all play a significant role. Be mindful of volatility as we approach the end of the quarter. Pricing for futures and swaps might become inconsistent toward the end of the trading month. It’s essential to adjust your exposure, especially as assumptions about demand and supply control (like OPEC meetings) become more pronounced. Create your live VT Markets account and start trading now.

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