Wall Street posts best day since April as oil slides and chip stocks rebound
The S&P 500 rose 2.35% and the Nasdaq 2.74% on November 9 as Brent crude fell almost 6% and semiconductor shares recovered from last week's selloff.
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US stocks rallied on Monday, recovering most of last week's heavy losses as oil prices fell sharply and chipmakers bounced back.
How the indexes closed
The Dow Jones Industrial Average rose 1,104.02 points, or 2.15%, to 52,389.75, the S&P 500 gained 173.08 points, or 2.35%, to 7,549.94 and the Nasdaq Composite climbed 673.71 points, or 2.74%, to 25,253.14, according to Reuters. CNBC said it was the S&P 500's best day since April 8, and that the Dow finished back above its Election Day close while the S&P 500 and Nasdaq remained slightly below theirs.
The Associated Press reported the S&P 500 is now about 3.4% below the all time high it set last month.
Oil leads the move
Brent crude fell $5.75, or 5.85%, to settle at $92.57 a barrel, and US West Texas Intermediate dropped $3.98, or 4.38%, to $86.85, Reuters reported. Prices fell after President Donald Trump said he was unlikely to order fresh attacks on Iran while talks to end the war progressed, although both countries reported shipping had been hit near the Strait of Hormuz. Lower oil eased worries about inflation.
Energy was the only S&P 500 sector in the red in afternoon trading, according to CNBC, while industrials led with a gain of more than 4%.
Chips bounce back, with one exception
Last week's selloff had been driven by concern that Democratic gains in the midterm elections could bring tighter rules on AI data centre construction and energy use. On Monday an index of semiconductor stocks rose 6.9% after falling more than 12% last week, Reuters said. Nvidia was the only decliner in that index, falling 4.2% after its board opened an independent review related to its chief executive.
What comes next
Investors are now focused on October US consumer price data, which will shape expectations for the Federal Reserve. Reuters reported that markets were pricing in a greater chance of a December rate increase. One strong session does not mean last week's volatility is over.
This article is news only and is not investment advice.