So here's what happened on Monday: stocks got off to a flying start, everyone was feeling good, and then... well, geopolitics happened. Again.

U.S. equities opened sharply higher, but the rally started to fizzle by lunchtime. The reason? President Donald Trump decided it was time to ask for some help on the world stage, specifically when it comes to the Strait of Hormuz. You know, that little strip of water where a huge chunk of the world's oil passes through.

This latest move really highlights the ongoing confusion about the U.S. strategy with Iran. Just last week, Trump was at a ceremony for fallen soldiers declaring, "We're winning the war by a lot." This week? He's asking other countries to pitch in. It's a bit of a pivot.

Ahead of a Kennedy Center board meeting, the President urged China, Japan, and other Asia-Pacific nations—the ones who really depend on Hormuz for their oil—to help police the waterway. We're talking major dependencies here: China gets 90% of its oil from the strait, Japan gets 95%, and South Korea gets 35%. That's not just a nice-to-have; that's economic lifeblood.

Trump is also looking to NATO for assistance, but so far, it's been radio silence on who's actually willing to send warships. In fact, German Chancellor Friedrich Merz made it pretty clear, stating his nation would not participate in the U.S.-Israeli war with Iran. So much for allied solidarity.

In a separate comment, Trump turned his attention to Kharg Island, which is basically Iran's main oil export terminal, handling up to 90% of the country's oil products. He called it "literally destroyed" except for the oil pipelines, which he warned could be eliminated "with five minutes' notice." He also tossed in the label "paper tiger now" for Iran. Not exactly diplomatic language.

And if that wasn't enough, according to a report from Axios that cited U.S. officials involved in planning, Trump is reportedly considering deploying U.S. ground forces to Kharg. So the situation seems to be escalating, not de-escalating.

All this geopolitical noise is doing what it usually does: creating volatility. West Texas Intermediate crude oil, which is up more than 62% year-to-date, fell 3.6% to $93.30 per barrel by midday Monday. It's a reminder that even in a strong uptrend, news can spark a sell-off.

The major stock indices, which had been enjoying a nice morning, started to give back some of their gains. Here's where things stood:

• The S&P 500 rose 1% to 6,698
• The Nasdaq 100 climbed 1.1% to 24,670
• The Dow Jones Industrial Average gained 0.7% to 46,916
• The Russell 2000 advanced 1.15% to 2,500

Tech Takes the Lead, Materials Lag

In the sector world, technology was the star of the show. The Technology Select Sector SPDR Fund (XLK) gained 1.5%, fueled largely by the ongoing AI frenzy surrounding NVIDIA Corporation (NVDA). The company's GTC conference is happening in San Jose through March 19, where CEO Jensen Huang is set to address roughly 30,000 attendees. When NVIDIA talks AI, the market listens.

Meta Platforms, Inc. (META) also contributed to the positive vibe, rising on reports that it plans to reduce its workforce by approximately 20% due to AI productivity gains. It's the classic market logic: job cuts often equal efficiency gains, which equals higher stock prices.

On the flip side, the Materials Select Sector SPDR Fund (XLB) was the lone sector swimming in red ink. Sometimes, it's just not your day.

In individual stock news, Dollar Tree, Inc. (DLTR) popped more than 4% after reporting fourth-quarter adjusted EPS of $2.56, which beat the consensus estimate of $2.53. Even in uncertain times, beating earnings still gets you a ticket to the green.

Elsewhere in the markets, gold eased 0.6% to $4,993.15 per troy ounce. The 10-year U.S. Treasury yield held steady at 4.245%, and the 30-year yield settled at 4.878%. And in the crypto corner, Bitcoin (BTC) gained 2.4% to $73,440. Different asset classes, different reactions.

Taking Stock of the Index Moves

Here's a snapshot of how the major U.S. indices were performing by midday Monday:

Updated by 12:32 p.m. ET

The ETF world mirrored the action:

• The Vanguard S&P 500 ETF (VOO) rose 0.76%.
• The SPDR Dow Jones Industrial Average ETF (DIA) rose 0.61%.
• The tech-heavy Invesco QQQ Trust Series (QQQ) rallied 0.96%.
• The iShares Russell 2000 ETF (IWM) traded 0.77% higher.

Monday's Biggest Winners and Losers

In the Russell 1000, some stocks had a spectacular day, while others... did not.

Top 5 Gainers:

Top 5 Losers:

So there you have it. A morning of optimism, tempered by an afternoon of reality. The market's initial enthusiasm ran into the hard wall of geopolitics, as President Trump's call for international help in the Strait of Hormuz reminded everyone that the world is a complicated place. Stocks still finished higher, but the path there got a lot bumpier. It's a classic case of the market trying to price in both corporate earnings and global conflict—never an easy task.