Dow Jumps 640 Points as Oil Prices Plunge Amid Eased Geopolitical Tensions

The US stock market opened higher on Monday as concerns over tensions in the Middle East eased and oil prices plummeted. The Dow Jones Industrial Average rose by 640 points, or about 1.22%, while the S&P 500 gained 0.59%. Brent crude dropped 4.9%, with West Texas Intermediate crude falling 6.3%.

The rally comes after a volatile July driven by worries over artificial intelligence spending and escalating tensions in the Middle East. Lower energy prices helped improve investor sentiment, easing fears that higher oil prices would keep inflation elevated and complicate the Federal Reserve's policy outlook.

Investors are now preparing for a busy week of corporate earnings and key economic data, including manufacturing activity data and labor market releases. The closely watched nonfarm payrolls report due Friday is expected to show the US economy added about 87,500 jobs in July, up from 57,000 in the previous month.