EconomyGlobal markets
Wall Street opens higher as Dow gains 403 points and oil slides on Iran peace hopes
US shares rose at the opening bell on the eve of Tuesday's midterm elections, with technology stocks steadying after a bruising October and crude falling sharply.
Key points
- The Dow opened up 403.09 points at 52,173.40, a gain of 0.78%.
- Oil fell sharply on hopes of a US-Iran peace deal, easing pressure on stocks.
- Apple slipped ahead of its results, and the midterms are on Tuesday.
Wall Street opened firmly higher on Monday, with the Dow Jones Industrial Average gaining more than 400 points at the bell as falling oil prices and a steadier technology sector lifted the mood a day before Americans vote in the midterm elections.
The Dow rose 403.09 points, or 0.78%, to 52,173.40 soon after trading began at 8 pm IST. The S&P 500 added 33.80 points, or 0.45%, to 7,613.87, and the Nasdaq Composite climbed 159.07 points, or 0.63%, to 25,596.07.
The gains came after a rough end to October. On Friday the S&P 500 had fallen 1.82% and the Nasdaq 2.86% as worries about the cost of the artificial intelligence boom hit chip and software stocks. On Monday technology and AI-linked shares steadied after that dismal month.
Oil did much of the work. Crude fell sharply on hopes of a US-Iran peace deal after Iranian negotiators ended another round of talks with Qatari mediators, with Brent trading around $109 a barrel, about 4% lower on the day. Cheaper energy eases one of the main worries for inflation and interest rates.
Apple was slightly lower ahead of its quarterly results, due after the US market closes. Investors want to hear what the company says about the holiday quarter, its AI plans and the rising cost of memory chips.
“The debate over whether AI returns can ultimately justify the scale of investment may not be resolved anytime soon,” said Emmanuel Cau, head of European equity strategy at Barclays. Europe was more cautious earlier in the day, with the Stoxx 600 index edging down 0.1%.
The bigger test comes on Tuesday. Opinion polls favour the Democrats to win the House of Representatives, while the race for the Senate is too close to call.
For Indian investors, the overnight mood in New York and the direction of oil will shape Tuesday’s start on Dalal Street. On Monday the Sensex had already jumped 1,233 points to 75,692, helped by the earlier fall in crude.