Dow jumps 900 points as oil prices fall and tech stocks rebound from last week's sell-off
Oil fell about 3% for U.S. crude, and the Dow moved back above its Election Day close, though the S&P 500 and Nasdaq remain slightly below.
Stocks surged Monday, with the Dow Jones Industrial Average up 957 points, or 1.9%. The S&P 500 rose 2.1% and the Nasdaq Composite gained 2.4%. Lower oil prices lifted investor sentiment, with U.S. West Texas Intermediate down 3% to around $87 a barrel and Brent down 4% to about $94.
Chip stocks recovered after a sharp AI-driven sell-off last week, when the iShares Semiconductor ETF had dropped about 13%. Amazon gained 5%, while Nvidia fell about 6% after its CEO investigation was announced. Broadcom and AMD each rose about 5%.
Analysts warned that the rally may not last. Investors are worried that tighter rules on data centers, energy use and development costs could slow the AI buildout. Traders are also watching key AI earnings this week and the consumer price index report on Tuesday.
Key points
- The Dow rose 957 points, or 1.9%, on Monday.
- WTI crude fell 3% to about $87 a barrel; Brent fell 4% to about $94.
- Chip stocks rebounded after a steep drop last week.
- Inflation data due Tuesday will be closely watched.
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Summarized with AI from the sources above and reviewed before publishing.
