Wall Street staged a sharp rebound on Monday as the Dow Jones Industrial Average jumped 540 points and the S&P 500 rallied, while Brent crude oil crashed 5.68% to $92.80 per barrel and US West Texas Intermediate fell 4.47% to $85.91. The decline followed a 16% weekly plunge in Brent, its steepest since the start of the Covid-19 pandemic, after President Donald Trump said he was highly unlikely to order fresh strikes on Iran as long as negotiations continued.
Attacks on vessels near the Strait of Hormuz and on Saudi energy infrastructure continue to pose risks; a fire was extinguished after Saudi Arabia's East-West pipeline was struck, though operations were not affected. Supply concerns also eased after JP Morgan estimated a global oil surplus of around 1.4 million barrels per day in October, while a Reuters survey showed OPEC production rose by 1.38 million barrels per day to 22.87 million bpd.
Gold gained 1.49% to $4,126.06 an ounce and US gold futures settled 1.6% higher at $4,140.70, supported by a weaker dollar and reduced energy-driven inflation concerns. Investors are awaiting US consumer price data on Tuesday and producer price data on Friday, with markets pricing an 84.5% probability of a Federal Reserve rate increase in December, according to CME's FedWatch tool.
Nvidia shares fell 5.2% after the company launched an independent investigation into reports that CEO Jensen Huang had been targeted by a foreign intelligence operation. The company said independent directors and outside lawyers will examine the reports, and it had no reason to believe confidential information was compromised. The investigation adds uncertainty before Nvidia's November 17 earnings report.
Tesla CEO Elon Musk defended the decision to wind down Cybertruck production in about eight months, saying order rates exceeded production and the move reflected the opportunity cost of expanding the Cybercab autonomous vehicle line. Tesla sold 20,237 Cybertrucks in the US last year, down 48% from 38,965 in 2024.
