Dow Jones Surges 1,104 Points as Oil Prices Slide and Technology Shares Rebound, Lifting Broader US Markets
On Monday, US equities finished markedly higher as a sharp drop in crude oil prices and a widespread rebound in technology stocks lifted the major indices out of <a s AI‑driven selloff.
The Dow Jones Industrial Average gained 1,104.02 points, or 2.15%, to settle at 52,389.75. The S&P 500 rose 2.34% to 7,549.82, while the Nasdaq Composite climbed 2.74% to 25,253.14.
The rally was driven by a more than 5% fall in Brent crude after President Donald Trump downplayed the chance of new strikes in Iran, reducing short‑term worries about energy‑driven financial stocks drove the gain. Caterpillar surged 7.16%, providing the biggest single‑stock lift to the price‑weighted index as machinery and AI‑infrastructure‑related industrial names rebounded from last week’s steep selloff. Goldman Sachs rose 4.67%, and Cisco Systems climbed 5.11%.
Amazon gained 2.97% and Microsoft climbed 2.60%. Nvidia dropped 4.39%, the steepest fall among the Dow’s thirty stocks, after the chipmaker’s board announced an independent probe into CEO Jensen Huang’s ties with a businesswoman alleged by U.S. intelligence to have served as a foreign intelligence asset. Chevron fell 0.86% and Boeing slipped 0.59%, as energy and aerospace names lagged.
The rally came after a weekend of corporate and geopolitical events that redirected attention from last week’s technology selloff. The Dow’s close lifted the blue‑chip index above its Election Day level, undoing most of the losses seen in the post‑midterm selloff.
The S&P 500 opened at 7,422.24 and ended at 7,549.82, gaining 172.96 points, or 2.34%. The benchmark reached an intraday high of 7,577.39 and a low of 7,422.24, closing within the upper half of its daily range.
Ten of the index’s eleven sectors finished in positive territory, with industrials leading at 4.2%, followed by consumer discretionary at 3.7% and information technology at 3.0%. Energy was the sole declining sector, falling 0.3%, as lower crude prices weighed on oil‑linked constituents.
Within the index, Advanced Micro Devices jumped 13.46%, Applied Materials climbed 11.21%, and Broadcom rose 8.65%, showing a focused rebound in semiconductor and equipment stocks that had suffered most from last week’s AI‑driven selloff. Nvidia’s 4.39% drop was the biggest headwind for the technology sector, yet the index mitigated the weakness with gains across industrials, financials, and consumer stocks that were broad enough to offset the single‑stock drag.
The S&P 500’s advance came as market participants assessed a sharp retreat in oil prices and positioned ahead of Tuesday’s October consumer‑price‑index release, the week’s most closely watched macroeconomic data point.
The Nasdaq Composite opened at 24,777.44 and closed at 25,253.14, gaining 673.71 points, or 2.74%. The technology‑heavy index traded between 24,762.57 and 25,354.30 during the session, finishing just below its intraday peak.
Semiconductor and semiconductor‑equipment shares drove the rebound. Advanced Micro Devices climbed 13.33%, Applied Materials rose 11.21%, Lam Research gained 10.49%, and Broadcom advanced 8.65%. Tesla added 5.37% and Meta Platforms rose 4.95%, contributing to the index’s broad‑based advance.
Nvidia was the principal exception, falling 4.39% and capping the index’s upside. The Nasdaq’s gain exceeded those of the Dow and S&P 500, consistent with its heavier weighting toward the technology and growth shares that led Monday’s recovery.
The index responded to the same combination of falling oil prices and receding immediate AI‑related panic that supported the broader market, with the semiconductor complex recovering a substantial portion of the ground lost during the previous week’s rout.
The Russell 2000 opened at 2,787.92 and closed at 2,845.52, gaining 91.42 points, or 3.32%. The small‑cap benchmark recorded an intraday high of 2,852.68 and a low of 2,784.04, finishing near the top of its range.
Smaller‑cap shares participated fully in the session’s advance, with the Russell 2000’s percentage gain exceeding those of all three major large‑cap indices. The move reflected broad participation across cyclical and growth‑sensitive segments of the small‑cap universe rather than concentration in a narrow group of names.
The benchmark’s performance was consistent with the day’s overall risk‑on tone, which lifted a wide range of equities as oil prices fell and technology shares recovered.
The S&P 100 opened at 3,656.25 and finished at 3,723.07, recording a gain of 87.23 points, or approximately 2.40%. The large‑cap benchmark traded between 3,656.25 and 3,727.75 during the session.
Movements in major constituents mirrored the broader market’s leadership, with industrial and technology names contributing the largest share of the index’s advance. Caterpillar’s 7.16% gain and Goldman Sachs’s 4.67% advance were among the most significant positive contributors, while Nvidia’s 4.39% decline limited the index’s upside.
The S&P 100’s performance reflected the same combination of falling energy prices, recovering technology shares, and pre‑CPI positioning that shaped trading across the major US equity benchmarks.
The Dow Jones Composite Average opened at 16,233.98 and closed at 16,493.06, gaining 365.34 points, or 2.27%. The composite traded between 16,233.98 and 16,553.19.
The Dow Jones Transportation Average ended at 20,395.85, compared with an opening level of 19,912.28, representing a gain of 620.98 points, or 3.14%. The Dow Jones Utility Average closed at 1,112.19, changing 1.06% from its opening level of 1,104.42.
The transportation average’s outperformance reflected the benefit of lower fuel costs for airlines and freight operators, while the utility average’s more modest advance was consistent with the defensive characteristics of the sector on a day when cyclical and growth shares led.
The Philadelphia Semiconductor Index (SOX) opened at 9,496.83 and closed at 10,033.93, gaining 643.68 points, or 6.85%. The sector benchmark reached an intraday high of 10,116.64 and a low of 9,467.26.
The scale of the SOX rebound followed its biggest weekly loss since March 2025 in the prior week. Advanced Micro Devices rose 13.33%, Applied Materials gained 11.21%, and Lam Research advanced 10.49%, while Nvidia fell 4.39%, the sole significant decliner within the semiconductor complex.
The index’s move reflected a concentrated recovery in chip and chip‑equipment shares after last week’s selloff, with the advance occurring despite the unresolved investigation surrounding Nvidia’s chief executive.
The NYSE Composite Index opened at 23,950.37 and closed at 24,499.15, recording a gain of 548.78 points, or approximately 2.29%. The index traded between 23,950.37 and 24,560.39 during the session.
The advance was broad‑based across the exchange’s listed equities, with the composite’s percentage gain closely tracking the S&P 500’s move. The benchmark’s performance confirmed that Monday’s recovery extended beyond the largest technology and industrial names into a wider cross‑section of US‑listed companies, consistent with the day’s overall risk‑on tone.
The S&P MidCap 400 opened at 3,602.50 and closed at 3,715.23, moving 112.73 points, or 3.13%, with an intraday range of 3,602.50 to 3,732.41.
The S&P SmallCap 600 opened at 1,686.61 and ended at 1,722.37, gaining 48.39 points, or 2.89%, after trading between 1,686.61 and 1,730.36.
Both benchmarks participated fully in the session’s advance, with the mid‑cap index’s percentage gain exceeding that of the large‑cap S&P 500. The two indices reflected movements among mid‑ and small‑cap shares as the combination of falling oil prices and recovering technology shares lifted risk appetite across the market‑cap spectrum, following a prior week in which smaller‑cap shares had also recorded losses alongside the major benchmarks.
The principal market catalyst was a sharp decline in crude oil prices after US President Donald Trump said fresh military strikes on Iran were “highly unlikely” while negotiations continued. Brent crude fell 5.71% to $92.71 a barrel, while West Texas Intermediate dropped 5.11% to $86.19.
A second catalyst was the technology sector’s recovery from last week’s AI‑driven selloff. The prior week’s declines had been amplified by the Democratic sweep in the midterm elections, which raised concerns about tighter regulation of data‑center construction and energy use.
Monday’s rebound reflected a partial reversal of those losses, with semiconductor shares leading the advance even as Nvidia remained under pressure from the board investigation into its chief executive.
Market participants were also positioning ahead of Tuesday’s October consumer‑price‑index release and Friday’s producer‑price‑index report, both of which were expected to inform expectations for Federal Reserve policy at the December meeting.
The CBOE Volatility Index (VIX) changed -20.0% to 20.51, compared with its previous close of 25.64.
The index, which measures expected volatility in the S&P 500 over the coming 30 days, retreated sharply as equity benchmarks recovered across the board.
The VIX’s decline coincided with the S&P 500’s 2.34% advance and the Nasdaq Composite’s 2.74% gain, reflecting a reduction in near‑term hedging demand as the market moved past the prior week’s technology‑led turbulence.
The index remained above its 52‑week low of 13.38 but well below the elevated levels reached during last week’s selloff.
Performance across the 11 S&P 500 sectors was broadly higher, with ten groups finishing in positive territory.
Industrials recorded the strongest move at 4.2%, followed by consumer discretionary at 3.7% and information technology at 3.0%.
Energy was the sole declining sector, falling 0.3% as lower crude prices weighed on oil‑linked constituents.
The remaining sectors recorded the following moves: communication services 1.4%, consumer staples 0.4%, financials 2.1%, health care 1.6%, utilities 1.1%, real estate 0.9%, and materials 1.2%.
The sector pattern, cyclical and growth‑sensitive groups leading while energy lagged, was consistent with the day’s oil‑price decline and technology rebound.
Defensive sectors’ more modest gains reflected a rotation away from the safe‑haven positioning that supported them during last week’s selloff.
Among the Magnificent Seven, Tesla moved 5.37%, Meta Platforms changed 4.95%, and Amazon recorded 2.97%.
Microsoft gained 2.60%, Alphabet rose 1.27%, and Apple advanced 2.31%.
Nvidia was the sole decliner, falling 4.39% as the board investigation into CEO Jensen Huang’s relationship with an alleged foreign intelligence asset continued to weigh on the stock.
The group’s aggregate performance, six gainers and one significant decliner, contributed positively to the major US equity benchmarks, with the technology‑heavy Nasdaq benefiting most from the breadth of the advance outside Nvidia.
Semiconductor stocks were sharply higher, with the Philadelphia Semiconductor Index moving 6.85% and the iShares Semiconductor ETF gaining approximately 7%, its best session since late July.
Advanced Micro Devices rose 13.33% and Applied Materials gained 11.21%, while Nvidia’s 4.39% decline was the sector’s principal exception.
Financial stocks recorded gains, with Goldman Sachs up 4.67%, Morgan Stanley up 3.19%, and Citigroup up 2.54%.
Energy stocks moved lower alongside crude prices, with Chevron down 0.86% and Exxon Mobil down 0.59%.
AI and growth stocks were higher overall, with the recovery in chip and semiconductor‑equipment names offset
