Dow Jumps 1%, Oil Craters 7% on Iran Peace Hopes: Airlines, Amazon Fly While Energy Sinks

MarketDash

Nov 2, 5:32 PM • 1 hour ago

Dow Jumps 1%, Oil Craters 7% on Iran Peace Hopes: Airlines, Amazon Fly While Energy Sinks

Crude's biggest one-day plunge since July 27 sent Treasury yields lower and lifted the Dow, airlines and Amazon, while energy stocks and AI hardware took it on the chin.

Key Points

Oil tumbled more than 7% Monday, its steepest one-day drop since July 27, after Iranian President Masoud Pezeshkian said the supreme leader had authorized the government to pursue a resolution through dialogue, following a message from Vice President JD Vance to Iran's Supreme National Security Council secretary Mohsen Rezaei aimed at restarting peace talks.
The Dow Jones Industrial Average rose 538 points, or 1%, to 52,308, led by Amazon.com Inc. (AMZN), which gained 4.7% after Phillip Securities upgraded the stock to Buy and lifted its price target to $330 from $320, adding about $121 billion to its market value.
Lower energy costs pulled Treasury yields down and sent investors into airlines, homebuilders and retailers a day before the midterm elections, with the U.S. Global Jets ETF (JETS) up 5.6% and Delta Air Lines Inc. (DAL) up 4.7%.
Energy stocks lagged as crude tumbled, with the Energy Select Sector SPDR Fund (XLE) down 3%, ExxonMobil Holdings Corp (XOM) down 3.2% and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) down 3.5%.
AI hardware sold off, led by Lumentum Holdings Inc. (LITE) down 13.3% and Marvell Technology Inc. (MRVL) down 7.9% after Marvell confirmed its $115 billion all-stock deal for Lumentum, while Morgan Stanley data showed hedge funds cutting AI exposure to underweight for the first time since early 2023.

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Wall Street climbed Monday as crude oil tumbled more than 7%, its steepest one-day drop since July 27, on renewed hopes for U.S.-Iran diplomacy.

Lower energy costs pulled Treasury yields down and sent investors into airlines, homebuilders and retailers a day before the midterm elections.

The catalyst came from Tehran.

Iranian President Masoud Pezeshkian said the country's supreme leader had given the government powers to seek a resolution of the conflict through dialogue, according to the state-run IRNA news agency. That followed a message from Vice President JD Vance to Mohsen Rezaei, secretary of Iran's Supreme National Security Council, aimed at restarting peace talks, The Wall Street Journal reported.

West Texas Intermediate crude fell 7.1% to $96.72 a barrel, back below $100, while Brent sank 7.6% to $104.82.

The S&P 500 rose 0.6% to 7,626, up 46 points.

The Dow Jones Industrial Average gained 538 points, or 1%, to 52,308. Amazon.com Inc. (AMZN) led the blue-chip index with a 4.7% gain after Phillip Securities upgraded the stock to Buy and lifted its price target to $330 from $320. The move added about $121 billion to Amazon's market value.

The Nasdaq 100 rose 0.5% to 28,514. Within the Magnificent Seven, Apple Inc. (AAPL) fell 1.5% ahead of quarterly results. The Russell 2000 advanced 1% to 2,841.

Bonds rallied as oil eased.

The 10-year Treasury yield fell 5 basis points to 4.89%. The 2-year yield slipped 2 basis points to 4.57%, and the 30-year yield dropped 6 basis points to 5.25%.

Gold rose 2% to $3,979 an ounce and silver jumped 3.5% to $51.01. Bitcoin (CRYPTO: BTC) slipped 1.1% to $77,378.

On the data front, the ISM manufacturing PMI rose to 55.5 in October from 54.5, above the 54.6 forecast, while the prices-paid gauge cooled to 75.2 from 77.9. S&P Global's final manufacturing PMI came in at 54.9, below the 56 forecast.

Monday's Performance in Major U.S. Indices

According to market data:

The Vanguard S&P 500 ETF (VOO) rose 0.6%.
The SPDR Dow Jones Industrial Average ETF Trust (DIA) climbed 1.1%.
The Invesco QQQ Trust (QQQ) edged up 0.4%.
The iShares Russell 2000 ETF (IWM) gained 1.1%.

Airlines Take Off as Oil Drags Energy Lower

Consumer discretionary led the S&P 500. The Consumer Discretionary Select Sector SPDR Fund (XLY) rose 3.2%, powered by Amazon, Tesla Inc. (TSLA) and Home Depot Inc. (HD).

Energy lagged as crude tumbled. The Energy Select Sector SPDR Fund (XLE) fell 3%, with ExxonMobil Holdings Corp (XOM) down 3.2%, and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) lost 3.5%.

Materials, financials and industrials gained between 1.8% and 2.3%, while technology and health care slipped.

Cheaper jet fuel lifted the U.S. Global Jets ETF (JETS) 5.6%, with Delta Air Lines Inc. (DAL) up 4.7%. The VanEck Gold Miners ETF (GDX) rose 3.9% alongside bullion.

Earnings drove the biggest gains in the Russell 1000.

IDEXX Laboratories Inc. (IDXX) soared 19.2%, its best day since August 2025, after third-quarter earnings of $4.01 a share topped the $3.71 consensus. The veterinary diagnostics company raised its 2026 earnings outlook to $14.96 to $15.16 a share.

Tempus AI Inc. (TEM) rose 10.7% after third-quarter revenue grew 23% to $411.5 million and the company lifted the low end of its 2026 revenue guidance to $1.60 billion.

Wingstop Inc. (WING) jumped 13.3%, a fourth straight gain since its Oct. 28 earnings report, bringing its rally since then to 37%.

Solar stocks bounced as yields fell. Nextpower Inc. (NXT) climbed 16.5%, and Enphase Energy Inc. (ENPH) rose 11.3%, recovering part of the 16% drop it suffered on Oct. 28 after a third-quarter miss.

AI hardware sold off.

Lumentum Holdings Inc. (LITE) sank 13.3% and Marvell Technology Inc. (MRVL) lost 7.9% after Marvell confirmed its $115 billion all-stock deal for Lumentum, offering 4.5 of its shares for each Lumentum share. Because the deal is paid in stock, Marvell's slide keeps shrinking the offer's value.

Fermi Inc. (FRMI) fell 10.2% and Everpure Inc. (P) dropped 7.4% as the AI infrastructure trade lost ground. Morgan Stanley's prime brokerage data showed hedge funds cutting AI exposure to underweight for the first time since early 2023.

Axsome Therapeutics Inc. (AXSM) slid 9.6% even as third-quarter revenue rose 52% to $259.7 million on sales of Auvelity and Sunosi.

Looking Ahead

After the close, Palantir Technologies Inc. (PLTR) reports with analysts expecting earnings of 41 cents a share.

For Apple Inc., analysts penciled in earnings per share at $1.99 and quarterly revenue at $113.4 billion

Vertex Pharmaceuticals Inc. (VRTX) ($4.82), ON Semiconductor Corp. (ON) (88 cents), Diamondback Energy Inc. (FANG) ($5.72), Williams Companies Inc. (WMB) (54 cents) and Realty Income Corp. (O) (41 cents) also report.

Monday's Russell 1000 Top Gainers

Monday's Russell 1000 Top Losers

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