US stocks rise as oil prices tumble on peace hopes
Wall Street indexes gained on Monday as falling oil prices and potential US-Iran peace negotiations provided relief to investors.
Major US stock indexes rose on Monday as oil prices dropped by more than 6 per cent amid hopes for a possible peace deal between the US and Iran, according to the Economic Times.
At 10:02 a.m. ET, the Dow Jones Industrial Average increased by 537.86 points, or 1.04 per cent, to 52,308.17. The S&P 500 rose 44.29 points, or 0.58 per cent, to 7,623.22, while the Nasdaq Composite climbed 183.02 points, or 0.72 per cent, to 25,620.02.
Brent crude fell to a near two-week low following reports that Iran is negotiating with Qatari officials to resolve its eight-month conflict with the US. Iranian President Masoud Pezeshkian stated that the country's supreme leader has given the government specific authorities regarding these peace talks.
Brent crude futures traded at $104.62 a barrel, down $8.81 or 7.77 per cent, while US West Texas Intermediate (WTI) crude futures fell $7.54 or 7.24 per cent to $96.58 a barrel. Energy shares declined by more than 2.1 per cent.
In the technology sector, Nvidia rose 1.5 per cent and Amazon gained 4.1 per cent. However, Oracle fell 5.8 per cent following plans to raise $20 billion through debt and a share sale, and Marvell Technology dropped 6.1 per cent after announcing a $115 billion all-stock acquisition of Lumentum.
Investors are also monitoring the US midterm elections on Tuesday and upcoming corporate earnings. Kiran Ganesh, a multi-asset strategist at UBS Global Wealth Management, told Reuters that the market may remain volatile during the earnings season.
