Stocks Soar as Oil Prices and Yields Retract

Global stock markets rose on Monday as oil prices and bond yields retreated from their sharp increases last week. The S&P 500 index gained 1.3%, pulling within 0.6% of its all-time high set in August, while the Dow Jones Industrial Average climbed 308 points, or 0.6%. The Nasdaq composite rose 2%.

The decline in oil prices was a major contributor to the rally. Brent crude fell 4.3% to $99.38 per barrel, down from nearly $110 last week but still above its summer price of around $72. Morgan Stanley's Michael Wilson cautioned that another spike in oil prices could hinder the US stock market's progress towards his year-end target.

The easing of bond yields also helped ease pressure on markets. The 10-year Treasury yield dipped to 4.95% from 5.01%, which had crossed above 5% for the first time in three years last week. Higher yields can make borrowing more expensive and hurt economic growth.