Wall Street Rallies at Midday as Oil Plunges More Than 7% on U.S.-Iran Peace Hopes

Wall Street rallied at midday on Monday, November 2, 2026, as oil prices plunged more than 7% on hopes that talks between Iran and Qatar could lead to a diplomatic end to the conflict with the United States, easing fears of a wider disruption to global energy supplies.

As of 11:31 a.m. Eastern, the Dow Jones Industrial Average was up 1.05% at 52,314, the Nasdaq Composite had climbed 0.76% to 25,631, and the S&P 500 was trading 0.64% higher at 7,629, according to The Motley Fool’s midday market update. Reuters reported a similar picture at 10:02 a.m. Eastern, with the Dow up 537.86 points, or 1.04%, at 52,308.17, the S&P 500 up 44.29 points, or 0.58%, at 7,623.22, and the Nasdaq up 183.02 points, or 0.72%, at 25,620.02.

The rebound offered relief after a bruising Friday session, when the S&P 500 fell 1.8%, the Dow declined 1.1% and the Nasdaq dropped 2.9% as investors sold technology and artificial intelligence stocks. Monday’s gains were broad: seven of the 11 major S&P 500 sectors were in positive territory, with consumer discretionary leading the advance while energy fell more than 2.1% as crude tumbled. On the New York Stock Exchange, advancing issues outnumbered decliners by 3.13 to 1, and by 2.08 to 1 on the Nasdaq.

Gold rose 1.97% to $3,975.80 an ounce, while the yield on the 10-year Treasury note slipped to 4.94%, The Motley Fool reported. Consumer cyclical stocks were the day’s top gainers, with losses concentrated in real estate and technology.

Oil plunge drives the risk-on mood

Crude was the clearest driver of Monday’s rally. Reuters reported that oil prices tumbled more than 6% as hopes of a U.S.-Iran peace deal grew, with Brent crude falling to a near two-week low. By midday, The Motley Fool put the drop at more than 7%.

Iranian President Masoud Pezeshkian said the country’s supreme leader had granted “certain authorities” to the government with regard to peace talks, according to state media cited by Reuters. The talks with Qatari officials have raised hopes that Middle East supply disruptions could ease after an eight-month-long conflict.

That shift hit energy shares directly. ExxonMobil traded 2.2% lower as crude fell, while the broader energy sector was the market’s weakest group. For American households, a sustained fall in crude would ease pressure at the pump: NationWire reported on November 1 that U.S. fuel prices had hit record election-eve highs, with gasoline nearing $4.20 a gallon. A one-day crude drop does not guarantee an immediate fall in pump prices, which move with a lag, but it removes some of the war premium that had been built into oil.

Monday’s oil move extends a decline that began in the morning session. NationWire reported earlier on November 2 that oil had fallen more than 3% in early trading on the same Iran-Qatar talks. By midday, that drop had more than doubled as traders bet more firmly on a diplomatic resolution.

Amazon jumps, Oracle slides on $20 billion fundraising

Most megacap and growth stocks gained on Monday. Nvidia rose 1.5% and Amazon.com rose 4.1%, Reuters reported, with Amazon rallying more than 4% as investors reassessed its record cloud growth, according to The Motley Fool.

Oracle was the notable exception. Shares of the cloud infrastructure provider fell 5.8% in morning trading, and were down 6.2% by midday, after regulatory filings showed it plans to raise $20 billion through a debt and share sale to finance its costly AI and cloud build-out. The plan comprises $10 billion in common stock and $10 billion in senior notes, with proceeds earmarked for general corporate purposes including capital spending, debt repayment, acquisitions, dividends and share buybacks.

Oracle had outlined the fundraising target at its investor day the previous week, and said last week that capital spending would peak this fiscal year and the next, while pledging to raise no more than $20 billion in additional financing for AI through fiscal 2030. The formal filing nevertheless heightened investor unease over dilution and balance-sheet leverage. Shares had already fallen roughly 33% this year through Friday, and Oracle had $125.34 billion in notes payable and other borrowings as of August 31, compared with fiscal 2026 revenue of $67.36 billion, Reuters reported.

Other movers underlined how selective the market remains. Marvell Technology fell 6.1% after the custom chipmaker said it is buying optical components maker Lumentum in a $115 billion all-stock deal, including debt; Lumentum shares fell 10.5%. Intel extended its losses, down 2.6%, after Friday’s worst one-day fall since the 1980s, when it forecast quarterly revenue below market estimates and said it does not expect positive cash flow this year. Mohawk Industries jumped 7.67% on a new share buyback plan. Apple fell 1.3% in morning trading ahead of its quarterly earnings, due after the closing bell on Monday.

Morgan Stanley: correction in its “final innings”

Adding to the more optimistic tone, Morgan Stanley strategists said on Monday that the U.S. market correction that began in June is in its “final innings,” Reuters reported. Strategists led by Michael Wilson, the bank’s chief U.S. equity strategist, said the November 3 midterm elections should help remove a major market overhang.

“We expect near-term clearing events to provide an attractive opportunity to add risk to quality cyclicals that have de-rated as we head into 2027,” the strategists wrote. They noted that the S&P 500 is catching down to weaker market breadth, typically the last stage of a slump, with 60% of Russell 3000 stocks already down at least 20% since June.

The call does not mean the turbulence is over. Reuters noted that the tech-heavy Nasdaq-100 ended October close to correction territory as investors grew wary of Big Tech’s soaring AI spending while awaiting evidence of stronger returns. An amended IPO filing showed Anthropic’s net loss narrowed sharply in the third quarter while revenue jumped ahead of a potential listing, a reminder that AI demand remains strong even as investors punish companies that spend without clear returns.

“It is likely to remain volatile through the earnings season, and individual companies may get punished by the market if they’re not fulfilling the market’s asks on all of those fronts,” Kiran Ganesh, multi-asset strategist at UBS Global Wealth Management, told Reuters.

What comes next: midterms, Apple, jobs report

Traders now face three catalysts in quick succession. The first is Tuesday’s midterm elections, which will determine whether Democrats can wrest control of Congress from President Donald Trump’s Republican Party. Democrats are widely predicted to win the House of Representatives, but the Senate is more in doubt. Republicans controlled both chambers during the first two years of the Trump administration.

The second is earnings. Apple reports after the bell on Monday, with analysts expecting quarterly earnings of about $2 per share on revenue of about $113 billion, according to Saxo Bank’s morning briefing. Palantir, AMD, Pfizer, Qualcomm, McDonald’s and Uber are also due to report this week. Data on Monday also showed U.S. manufacturing activity picked up in October amid solid domestic demand, Reuters reported.

The third is Friday’s October jobs report, scheduled for November 6, which will give the latest read on the health of the U.S. labor market. Until then, Monday’s rally looks like a market catching its breath after October’s technology sell-off — helped by cheaper oil, but still waiting for proof that the AI spending boom can turn into profits, and for voters to settle the political outlook.

Frequently Asked Questions

Why did stocks rally on November 2, 2026?

Stocks rose at midday as oil prices plunged more than 7% on hopes that Iran-Qatar talks could lead to a diplomatic resolution with the United States, easing energy-supply fears. The Dow rose about 1%, the S&P 500 gained about 0.6% and the Nasdaq climbed about 0.7%, rebounding from Friday’s sharp sell-off.

Why did oil prices fall so sharply?

Traders bet that talks between Iran and Qatari officials could end the eight-month conflict and ease Middle East supply disruptions. Brent crude fell to a near two-week low, and the drop deepened from more than 3% in the morning to more than 7% by midday.

Why did Oracle shares fall while Amazon rose?

Oracle fell about 6% after filing plans to raise $20 billion through $10 billion in stock and $10 billion in bonds to fund AI infrastructure, raising concerns about dilution and leverage. Amazon rose more than 4% as investors reassessed its record cloud growth.

What did Morgan Stanley say about the market correction?

Morgan Stanley strategists said the correction that began in June is in its “final innings,” arguing that the November 3 midterm elections should remove a major overhang and that near-term clearing events could offer a chance to add quality cyclical stocks heading into 2027.

What should investors watch next this week?

Tuesday’s midterm elections, Apple’s earnings after the bell on Monday, further big-tech results during the week, and the October jobs report on Friday, November 6.

Sources: Reuters, via Devdiscourse; The Motley Fool, Stock Market Midday, November 2, 2026; Reuters, via CNA/CNBC TV18, on Oracle’s $20 billion fundraising; Saxo Bank Morning Brew, November 2, 2026. Related NationWire coverage: Oil prices drop more than 3% as Iran-Qatar talks ease war fears and U.S. stock futures rise ahead of midterms, Apple earnings.