US Stock Market Rallies as Oil Prices Drop Amid Iran Tensions
The US stock market rallied on Monday after oil prices dropped, helping to calm concerns about inflation. The S&P 500 index rose 1.5% and is now just 0.1% below its record high set earlier this summer. The Dow Jones Industrial Average climbed 693 points, or 1.3%, to an all-time high.
The drop in oil prices was triggered by President Donald Trump's decision to hold off on new strikes against Iran at the urging of allies in the region. This eased worries about the global flow of crude and led to a decline in Treasury yields. The yield on the 10-year Treasury fell to 4.68% from 4.75% late Friday.
Airlines and other companies with high fuel costs led the market higher, with United Airlines rising 5.8% and American Airlines climbing 5%. Boeing jumped 8% after US regulators certified its 737 MAX-7 planes for commercial service.