U.S. stocks rose ahead of a crucial week for profit reports from major tech companies, with the S&P 500 increasing by 0.5% and nearing record highs. Five of the 'Magnificent Seven' tech giants, including Apple, Microsoft, and Amazon, are set to release earnings soon, prompting investor optimism despite earlier concerns over overvaluation. Tesla recently reported strong profits, boosting its stock significantly, while other tech stocks also gained. Meanwhile, oil prices dropped sharply, with U.S. crude falling nearly 6%, following a restrained Israeli response to recent tensions with Iran, alleviating some supply concerns. This decline in oil prices negatively impacted energy stocks like Exxon Mobil and ConocoPhillips, which saw losses. The upcoming earnings reports and economic data, including the Personal Consumption Expenditure index, are expected to influence market direction significantly.