* Meta gains after report it plans to shrink 20% jobs

* Dollar Tree ( DLTR ) rallies after signaling tariff relief

* Nvidia's ( NVDA ) conference could boost AI confidence

(Updates with market close)

By Noel Randewich and Johann M Cherian

March 16 (Reuters) - Wall Street ended sharply higher on

Monday, fueled by gains in AI-related stocks, with Meta

Platforms climbing after a report that it is preparing for

sweeping layoffs, while oil prices retreated amid ongoing

uncertainty about the Middle East conflict.

Meta jumped after Reuters reported that the social

media platform plans to shrink its workforce by at least 20% to

offset costly artificial-intelligence infrastructure bets and

prepare for greater efficiency brought about by AI-assisted

workers.

Nvidia ( NVDA ) climbed after CEO Jensen Huang announced new

components at the chipmaker's annual developer conference.

Taiwan's Foxconn, which makes AI servers using

Nvidia ( NVDA ) chips, issued a strong quarterly revenue forecast on

Monday.

Tesla rose after CEO Elon Musk said the company's

Terafab project to make AI chips will launch in seven days.

Micron Technology ( MU ) jumped after the memory chipmaker

announced plans for a second manufacturing facility in Taiwan.

A modest drop in crude prices after the U.S. said it would

be "fine" with some Iranian, Indian and Chinese ships moving

through the Strait of Hormuz also offered some relief to the

market.

"You've got news that Iranian oil tankers are moving

through, or are soon going to be moving through, the Strait of

Hormuz, which is a positive for global economic stability," said

Terry Sandven, chief equity strategist at U.S. Bank Wealth

Management in Minneapolis.

"But on balance, the path forward is filled with twists and

turns. ... There's lack of visibility when the conflict is

likely to end."

Higher energy prices are likely to feature prominently in

central bank meetings globally this week.

The Fed is widely expected to leave interest rates unchanged

at the end of its two-day meeting on Wednesday. Traders have

pushed back their expectations for an interest rate cut of at

least 25 basis points beyond October, according to LSEG-compiled

data, compared with their previous expectation of a cut in July.

"There are a couple of reasons to take any signals from this

meeting with a pinch of salt. First, a swing in oil prices in

either direction could quickly change the Fed's thinking, and

second, markets might slightly discount messages from Chair

(Jerome) Powell, given this will be one of the last of his

term," said James McCann, senior economist at Edward Jones in a

note.

According to preliminary data, the S&P 500

gained 67.42 points, or 1.02%, to end at 6,699.61 points,

while the Nasdaq Composite gained 269.34 points, or

1.22%, to 22,374.70. The Dow Jones Industrial Average

rose 385.63 points, or 0.83%, to 46,944.10.

Wall Street's fear gauge, the CBOE volatility index,

dropped, while the rate-sensitive Russell 2000 index

gained.

Despite logging declines over the past three weeks, U.S.

equities have fared better than global peers, buoyed by a

rebound in beaten-down technology stocks and as the country is a

net oil exporter. However, the S&P 500 remains down about 2% so

far in 2026.

February industrial production increased 0.2%, slightly

better than expectations of a 0.1% rise.

Travel stocks Delta Air Lines ( DAL ) and Norwegian Cruise

Line Holdings ( NCLH ) both gained, lifted by lower oil prices.

Crypto stock Strategy Inc ( MSTR ) climbed as bitcoin

rallied around 3%.

Discount retailer Dollar Tree ( DLTR ) rose after signaling

it could benefit from favorable tariffs in the near term.