Oil Price Drop Sends US Stocks Soaring Near All-Time High
US stocks are experiencing a significant rally near their all-time high, driven by falling oil prices that have eased Wall Street's concerns about inflation.
The S&P 500 jumped 1.5% and is now just 0.1% below its record set earlier this summer. The Dow Jones Industrial Average surged 649 points, or 1.2%, while the Nasdaq composite rose 2.2% as of 2:30 p.m. Eastern time.
The decline in oil prices, particularly for Brent crude, which fell 5% to $83.52, has helped alleviate worries about global inflation and supply chain disruptions. Treasury yields also dropped, with the 10-year yield dipping to 4.68% from 4.75% on Friday.
Airlines and companies with high fuel costs led the market's gains, with United Airlines rising 5.5%, American Airlines climbing 4.7%, and Norwegian Cruise Line Holdings increasing 4.5%. Boeing soared 7.2% after regulators certified its new 737 MAX-7 planes for commercial service.
The rally in stocks has been fueled by a strong earnings season, with companies like Tyson Foods delivering better-than-expected profits. The average long-term US mortgage rate has risen to its highest level in a year, and higher yields could potentially undercut stock prices and slow the economy.