Wall St jumps as oil slide cools inflation worries; Nvidia slumps
SPY•U.S. stocks rallied on Monday as falling oil prices eased inflation concerns: the Dow rose 2.15%, the S&P 500 gained 2.35% and the Nasdaq advanced 2.74%. Nvidia fell 4.2% despite a 6.9% surge in the semiconductor index.
1. Broad market rally
All 11 major S&P 500 sector indexes rose, with industrials and consumer discretionary each gaining more than 3%. The S&P 500 recorded its biggest daily percentage gain since April 8, while the Nasdaq had its biggest advance since July 30.
2. Nvidia diverges
Nvidia fell 4.2% and closed at its lowest level since April 7 as investors questioned CEO Jensen Huang's future after an internal investigation into whether a foreign intelligence effort had targeted him. The Philadelphia Semiconductor Index rose 6.9%; Broadcom gained 8.8% and Advanced Micro Devices climbed 13.3%.
3. Oil and rate outlook
A sharp drop in crude prices helped temper price-pressure concerns, while inflation readings were due later in the week. Expectations for a Federal Reserve rate hike at its December meeting remained above 80%, and Richmond Fed President Tom Barkin said the central bank should move with care.
