US stocks rally as oil, not politics, sets the tone
SPY•US stocks rebounded sharply on Monday as crude fell more than 4%, with the Nasdaq up about 2.7% and all S&P 500 sectors higher. Investors turned to October CPI data due before Tuesday’s opening bell.
1. Stocks rebound broadly
The Dow and S&P 500 each gained more than 2%, while the Nasdaq climbed more than 2.5%. The mid-cap S&P 400 and small-cap Russell 2000 each rose more than 3%, and all 11 S&P 500 sectors finished higher. Industrials led with a 3.8% gain.
2. Oil and CPI in focus
Nymex crude futures fell more than 4% after President Donald Trump downplayed the likelihood of renewed strikes on Iran, helping shift attention from political and AI-related worries that had weighed on stocks the prior week. The PHLX Semiconductor Index jumped nearly 7%, with 29 of its 30 constituents rising. October CPI data are due before Tuesday’s opening bell; economists expect headline CPI to rise 0.3% month over month and core CPI to increase 0.2%.
