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Stocks Rally as Crude Oil Falls on US-Iran Hopes
US stocks rise as crude oil falls on hopes of US-Iran diplomacy, with chipmakers leading the gains.
Key points
- WTI crude fell more than 6% to a one-week low after Axios reported Trump wants to give diplomacy with Iran more time.
- The ISM manufacturing index rose 1.0 to 55.5 in October, stronger than expectations of 54.5.
- The 10-year T-note yield fell 2.1 bp to 4.908%, while markets priced a 78% chance of a +25 bp rate hike in December.
Why it matters. Falling oil prices and easing inflation expectations may support stocks, though markets still price a 78% chance of a rate hike at the FOMC's December 8-9 meeting.
US equities advanced today, with the S&P 500 up 0.74% and the Dow up 1.04%, as WTI crude slid more than 6% to a one-week low. An Axios report said President Trump told Israeli Prime Minister Netanyahu he wanted to give diplomacy with Iran more time before resuming strikes. Iran's state-run IRNA reported that Supreme Leader Khamenei granted the government authority to engage in talks with the US, while chipmakers and AI-infrastructure stocks led gains.
Latest updates
Stocks Rally as Crude Oil Falls on US-Iran Hopes
US stock indexes rallied as crude oil prices fell on hopes for progress between the United States and Iran. The S&P 500 rose 0.74%, the Dow Jones Industrial Average gained 1.04% and the Nasdaq 100 added 0.74%. December E-mini S&P futures rose 0.72%, and December E-mini Nasdaq futures also gained 0.72%. The lower oil prices eased inflation concerns that had weighed on equities. The moves were reported by Barchart in its midday market coverage.
Crude Oil Falls Sharply as Rubio Signals Diplomacy With Iran
Crude oil prices fell sharply on Monday after U.S. Secretary of State Marco Rubio said President Donald Trump prefers not to use military force against Iran. Rubio said Washington would like to resolve the conflict diplomatically. Brent crude futures, the international benchmark, fell 6.4% to $106.20 a barrel as of 9:50 a.m. ET. U.S. West Texas Intermediate declined 6.5% to $97.35 a barrel. Both sides are reported to be pursuing diplomacy amid ongoing Mideast tensions ahead of the US midterm elections.
Oil falls about 3% as US and Iran explore diplomacy despite Hormuz attacks
Oil prices fell on Monday after news that both the United States and Iran are seeking diplomatic options to their conflict, CNBC reports. Brent crude for January delivery declined 3.31% to $109.67 a barrel. U.S. West Texas Intermediate futures for December fell 3.34% to $100.64 a barrel. The decline came despite renewed attacks in the Strait of Hormuz. The move reflects hopes that diplomacy could ease supply risks ahead of the US midterm elections.
Oil Prices Retreat Ahead of US Midterms Despite Renewed Hormuz Attacks
Oil prices declined ahead of Tuesday's US midterm elections, according to Seeking Alpha. Investors weighed renewed attacks on commercial vessels near the Strait of Hormuz against prospects for a diplomatic resolution to the conflict with Iran. Shipping threats in the strait continue to affect energy markets. OPEC+ output decisions are also being watched by traders.