Stock Market Midday, Nov. 2: Stocks Rally as Oil Prices Tumble on Diplomatic Hopes

As of 11:31 AM ET, the Dow Jones Industrial Average (^DJI +1.07%) is up 1.05% to 52,314, the Nasdaq Composite (^IXIC +0.73%) has climbed 0.76% to 25,631, and the S&P 500 (^GSPC +0.58%) is trading 0.64% higher at 7,629 as risk appetite returns to Wall Street.

Gold is up 1.97% to $3,975.80, and the 10-Year Treasury yield has slipped 0.04% to 4.94%, while the consumer cyclical sector is today’s top gainer, with losses in real estate and technology.

Today’s biggest moves

Amazon.com, Inc. shares are rallying more than 4% as investors reassess record cloud growth, while Oracle (ORCL -6.04%) has fallen 6.2% following a $20 billion fundraising announcement. ExxonMobil is trading 2.2% lower as crude prices tumble, while Mohawk Industries, Inc. has jumped 7.67% on a new share buyback plan.

What this means for investors

Global markets are bouncing back from Friday’s drop, with crude oil prices plummeting more than 7% today as investors bet on a diplomatic resolution to the conflict with Iran.

Technology stocks are in the spotlight, too, with Oracle plunging after it filed plans to issue $10 billion in stock and $10 billion in bonds to finance its AI infrastructure investments. The filing was a follow-up to its capital spending plans announced last week, however, and shouldn’t have surprised investors.

That just shows the market remains nervous that tech names are overspending for the AI build-out. Tomorrow’s U.S. midterm elections and the October jobs report will be in focus as the week progresses.

Howard Smith has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Micron Technology, and Oracle. The Motley Fool has a disclosure policy.

Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.