US Stocks Near All-Time High as Oil Prices Fall
US stocks continued their upward trend on Monday, nearing an all-time high as falling oil prices eased concerns about inflation. The S&P 500 jumped 1.5% and is just 0.1% below its record set earlier this summer.
The Dow Jones Industrial Average rose by 649 points, or 1.2%, while the Nasdaq composite increased by 2.2%. This rally comes after a volatile July, during which oil prices fluctuated significantly due to the war with Iran and other global concerns.
The price of Brent crude dropped 5% to $83.52 following President Donald Trump's announcement that he would hold off on new strikes against Iran at the urging of regional allies. This decision helped alleviate worries about the global flow of crude, leading to a decrease in Treasury yields.
Companies with significant fuel costs, such as airlines and Norwegian Cruise Line Holdings, led the market gains. United Airlines rose 5.5%, while American Airlines climbed 4.7%. Boeing surged 7.2% after regulators certified its new 737 MAX-7 planes for commercial service.