Oil Price Drop Boosts US Stocks to Record-Busting Levels
US stocks surged on Monday as falling oil prices alleviated Wall Street's concerns about inflation. The S&P 500 jumped 1.5% and is now just 0.1% below its all-time high set earlier this summer.
The Dow Jones Industrial Average rose 649 points, or 1.2%, while the Nasdaq composite increased by 2.2%. Stocks benefited from the decline in oil prices, with Brent crude falling 5% to $83.52 per barrel.
President Donald Trump's decision to hold off on new strikes against Iran at the urging of allies in the region eased worries about global oil supply and helped Treasury yields fall. The yield on the 10-year Treasury dipped to 4.68% from 4.75% late Friday.
Airlines and other companies with large fuel bills led the market, with United Airlines rising 5.5%, American Airlines increasing by 4.7%, and Norwegian Cruise Line Holdings climbing 4.5%. Boeing soared 7.2% after regulators certified its new 737 MAX-7 planes for commercial service.
Big US companies are on track to report earnings per share that are 47% higher than a year ago, with more than half of the S&P 500 companies already reporting. Growth in US manufacturing accelerated to its strongest level since 2022, according to a recent report.