Oil's pullback, solid data fuel bounce in global stocks
SPY•Global stocks rose as oil prices fell sharply and U.S. manufacturing activity picked up in October. The ISM manufacturing PMI increased to 55.5 from 54.5 in September, above economists’ forecast of 54.5.
1. Stocks rebound
U.S. stock indexes opened higher, with the Nasdaq up 1.2% and the S&P 500 up 1%. The gains followed Friday’s retreat in U.S. technology shares; SpaceX and Amazon each rose 5%.
2. Oil and activity
Brent crude fell 6.5% to about $106 as Iranian negotiators left talks with Qatari mediators and a draft proposal circulated. U.S. manufacturing activity strengthened, while the euro zone manufacturing PMI dipped to 52.7 from 52.9 but exceeded its preliminary estimate of 52.4.
3. Week ahead
Investors are weighing recent Federal Reserve and European Central Bank policy decisions, U.S. midterm elections and earnings. Apple was due to report after Monday’s close, with investors focused on its holiday-quarter outlook, comments on AI and Siri, and rising memory-chip costs.
