Dow Soars 560 Points as Oil Prices Plummet and AI Earnings Bounce Back

The stock market turned around Monday morning after a rough July, with all three major indexes rising more than 1% by mid-morning. The Dow Jones Industrial Average led the way, up 560 points or 1.1%, followed closely by the S&P 500 at 1.2% and the Nasdaq Composite at 1.8%. This sudden shift in mood was largely driven by cheaper oil prices, which have been a major concern for markets lately.

Oil prices fell sharply after President Trump cancelled planned strikes against Iran, opting instead for diplomatic talks. This move eased inflation pressure and boosted stocks across the board, from value plays to high-octane growth stocks. Alphabet's 5.3% gain was particularly notable, as it made up a significant portion of both the S&P 500 and Nasdaq Composite indexes.

Other AI-related companies, such as Nvidia, also saw gains of 4% or more. However, Apple's soft guidance from last week continued to weigh on its stock, causing it to dip by 1.9%. Energy stocks were broadly down, but two-thirds of the Dow stocks were up this morning.