Dow Jumps 540 Points as Oil Slides 5% and Nvidia Drags

NEW YORK — Wall Street rallied on Monday as the Dow Jones Industrial Average jumped more than 540 points at the open and oil prices fell about 5%, with traders betting that diplomacy could bring the eight-month Iran war to an end.

The Dow climbed 540.52 points, or 1.05%, to 51,826.25 at the opening bell, while the S&P 500 gained 0.81% to 7,436.76 and the Nasdaq Composite rose 0.82% to 24,780.15. The rally gathered strength through the morning: by 10:58 a.m. Eastern, the Dow was up 897.70 points, or 1.75%, at 52,183.43, the S&P 500 stood 2.19% higher at 7,538.07 and the Nasdaq had climbed 2.75% to 25,255.07. All figures are intraday snapshots, not closing results, and they moved through the session.

The rebound offered relief after a bruising week for technology and artificial intelligence stocks. The Dow had closed on Friday at 51,285.73, down 0.46%, after investors sold AI shares on doubts about the returns from heavy spending.

Oil falls as Trump plays down new strikes

Crude was the clearest driver of the risk-on mood. Brent crude, the international benchmark, fell about 5% to $93.38 a barrel in afternoon trading, while US West Texas Intermediate dropped about 4.4% to $86.87. Reuters reported Brent down $4.09, or 4.2%, at $94.23 by 1317 GMT, with WTI down $3.57, or 3.9%, at $87.26.

The trigger was President Donald Trump telling CNN on Sunday that he was “highly unlikely” to order new attacks on Iran as long as talks to end the conflict produce a strong agreement. The remark eased fears of a wider disruption to Middle East energy supplies, and traders priced out some of the war premium that had been built into crude.

The fall extends a steep decline: Brent had already plunged about 16% last week to a two-month low of $93.22, its sharpest weekly fall since the start of the Covid-19 pandemic. Wall Street had rallied a week ago on the same hopes, when oil fell more than 7% in a single session as talks between Iran and Qatar raised the prospect of a diplomatic settlement.

For American households, a sustained fall in crude would eventually ease pressure at the pump, although retail petrol prices move with a lag and a single day’s drop guarantees nothing. Energy shares were the market’s weakest group as crude tumbled, while consumer discretionary stocks led the advance.

Nvidia slides as board inquiry widens

The rally had one conspicuous exception. Nvidia’s board opened an independent investigation on Sunday after chief executive Jensen Huang admitted to staff that he had an affair with Alice Huang, a technology executive at Singapore-based data centre company Megaspeed whom US officials allege was recruited by Chinese intelligence.

Nvidia shares fell about 6% in pre-market trading on Monday, the only major technology stock to buck the rebound. The board said it had “no reason to believe” that the company’s secrets or national security had been compromised, and Huang has said he is committed to continuing to lead the company. No charges have been brought against either Huang, and the spying allegation rests on an unpublished US intelligence assessment reported by the Financial Times and the New York Times, not on a public finding.

Three House committee chairmen have asked Huang for a closed-door briefing on 18 November, the day after Nvidia reports third-quarter results. President Trump defended Huang on Sunday night. Markets had already been punishing the chipmaker: its shares have fallen about 22% over the past month, wiping roughly $1.39 trillion from its market value since October.

What comes next: inflation data on Tuesday

Traders now face their next test on Tuesday, when the Bureau of Labor Statistics publishes October’s consumer price index at 8:30 a.m. Eastern. The report will shape expectations for the Federal Reserve’s next move on interest rates, and producer price data follows on Friday. Earnings from Cisco, CoreWeave and Nebius are also due this week, keeping the focus on whether spending on artificial intelligence is producing returns.

Monday’s session showed how quickly sentiment can turn when the oil price moves. Stocks steadied after the midterm elections last week, but the market remains unsettled: the rally could fade just as fast if Tuesday’s inflation figures disappoint or the Iran talks stall. For now, though, Wall Street has its rebound — and cheaper oil is doing much of the work.

FAQ

Why did US stocks rally on Monday, 9 November?

Stocks rose as oil prices fell about 5% after President Trump said he was “highly unlikely” to order new strikes on Iran if talks progress, easing supply fears. The Dow jumped 540 points at the open and gained further through the morning, rebounding from last week’s AI-led sell-off.

Why did oil prices fall so sharply?

Traders bet that diplomacy could end the eight-month Iran war and ease Middle East supply disruptions. Brent crude fell about 5% to $93.38 a barrel, extending a roughly 16% fall last week.

Why did Nvidia shares fall while the market rose?

Nvidia fell about 6% in pre-market trading after its board opened an independent investigation into chief executive Jensen Huang over an affair with an executive US officials allege was recruited by Chinese intelligence. The board says it has no reason to believe any secrets were compromised.