Wall Street stocks rose modestly on Monday as investors watched developments in US-Iran peace talks and cheered the unveiling of a new computer chip that promises to bring artificial intelligence to personal computing.

Tech stocks propelled the Nasdaq and the S&P 500 to a series of recent record closing highs.

US President Donald Trump said that talks with Iran will continue. Earlier, Iran’s news agency announced that Tehran was suspending indirect talks with Washington, now in their fourth month, after a new round of strikes threatened to derail diplomatic efforts to end the war.

The escalation of hostilities sent crude prices soaring, along with concerns that a protracted war could fuel elevated, temporary inflation.

“We don’t really know where things stand,” said Thomas Martin, senior portfolio manager at GLOBALT in Atlanta. “The market feels like something is going to happen at some point, but we don’t have very good information to go forward, like what the Iranians really want and what compromises Trump is willing to make.”

Citing a call with Israeli Prime Minister Benjamin Netanyahu, Trump said stocks increased their gains after Israeli troops would not go into Beirut.

Nvidia made the jump after the company unveiled a new chip that puts AI capabilities directly into personal computers.

It’s the result of a three-year partnership with Microsoft to “reinvent the PC” for the AI ​​age, Nvidia CEO Jensen Huang said. Microsoft shares rose.

Reaction in semiconductor stocks was mixed. Qualcomm collapsed and so did Intel. Shares of Micron rose sharply, breaching the $1,000 mark for the first time.

The Philadelphia SE Semiconductor Index advanced.

In economic news, the US Factory activity expanded for the fifth straight month in May as manufacturers navigated tariff and geopolitical crosswinds.

Investors will turn to Friday’s jobs report ahead of Kevin Warsh’s debut policy meeting as US Federal Reserve chairman this month, amid fears of rising inflation linked to the Iran war that could fuel a stock market rally.

The S&P 500 rose 20.19 points, or 0.27%, to end at 7,600.03, while the Nasdaq Composite added 114.75 points, or 0.43%, to 27,087.37, according to preliminary data. The Dow Jones Industrial Average rose 44.70 points, or 0.09%, to 51,076.85.

Software stocks were buoyed by a sharp sell-off earlier this year on fears of AI disruption. ServiceNow and IBM prices rose sharply. The Software Services Index moved up.

“On the software side, companies that weren’t doing very well are doing well today,” Martin added. “Some of that is thanks to Nvidia comments that software is part of the solution, so the market is coming back to “software stocks.”

Cadence Design Systems made the jump after launching an Nvidia-powered AI agent for chip design.

Broadcom’s earnings, on Wednesday, will be closely analyzed following Dell’s solid results last week, which signaled strong AI server demand.