Wall Street Rebounds After Previous Week’s Selloff

US stocks rallied on Monday as declining oil prices helped ease inflation concerns and supported a broad recovery across the equity market. The advance followed the S&P 500’s largest weekly decline since April 2025, as investors reassessed risks surrounding artificial intelligence valuations and potential regulatory changes.

The Dow Jones Industrial Average gained 1,131.81 points, or 2.21%, to close at 52,417.54. The S&P 500 advanced 177.81 points, or 2.41%, to 7,554.67, while the Nasdaq Composite climbed 656.06 points, or 2.67%, to 25,235.49.

The S&P 500 was on track for its largest daily percentage gain since April 8, while the Nasdaq was positioned for its strongest session since July 30.

All 11 major S&P 500 sector indexes advanced. Industrials and consumer discretionary shares led the gains, each rising more than 3%.

Falling Oil Prices Ease Inflation Concerns

The decline in crude prices provided an important source of support for equities. Brent crude futures fell nearly 5% after US President Donald Trump indicated that renewed attacks on Iran were highly unlikely while negotiations continued.

Lower energy prices helped reduce immediate concerns about inflationary pressure, improving investor sentiment after a difficult week for global markets.

Attention is now shifting toward upcoming US inflation data. The Labor Department is scheduled to release its October Consumer Price Index report on Tuesday, followed by the Producer Price Index on Friday.

However, monetary policy uncertainty remains. Stronger-than-expected October employment data have reinforced expectations that the Federal Reserve could raise interest rates in December, creating a potential counterweight to the improvement in equity sentiment.

Nvidia Falls as Semiconductor Stocks Recover

Nvidia declined approximately 6%, reaching its lowest intraday level since March 31, despite the broader market rally. The decline followed an internal investigation into whether CEO Jensen Huang had been targeted by a foreign intelligence effort, raising questions about his future at the company.

The weakness contrasted with a strong recovery across the wider semiconductor industry. The Philadelphia Semiconductor Index rose more than 6%, recovering from a decline of more than 12% during the previous week.

Broadcom gained nearly 9%, while Advanced Micro Devices surged approximately 13%, making them the largest positive contributors to the semiconductor index. Nvidia was the index’s only declining component.

The divergence highlights how company-specific leadership concerns can influence individual technology stocks even when broader sector sentiment improves.

Corporate Results Add to Market Gains

Several major companies also contributed to Monday’s positive trading session.

Investment firm KKR advanced 1.9% after reporting record quarterly profit. Constellation Energy gained more than 10% after its adjusted third-quarter earnings exceeded expectations, drawing attention to the company’s exposure to growing AI infrastructure demand.

Berkshire Hathaway’s Class A shares rose 0.6% despite the conglomerate reporting lower third-quarter profit.

Market breadth was strongly positive. Advancing stocks outnumbered decliners by 4.46 to 1 on the New York Stock Exchange and by 3.56 to 1 on the Nasdaq. The S&P 500 recorded 13 new 52-week highs and three new lows, while the Nasdaq Composite registered 73 new highs and 135 new lows.

What Investors Should Watch Next

The upcoming US inflation reports will be important in determining whether the decline in energy prices translates into broader relief on price pressures. Strong employment data and continued expectations of a December rate increase remain key considerations for equity valuations.

Investors will also be assessing whether the technology recovery can continue following the previous week’s sharp correction. Nvidia’s leadership uncertainty remains a company-specific risk, while gains in other semiconductor stocks suggest that demand expectations across the industry have not broadly disappeared.

The combination of inflation data, Federal Reserve expectations and developments in the AI investment cycle will shape the market’s next direction.