Stocks surge over 1% as falling oil prices ease inflation fears and strong AI earnings boost tech shares.
The Dow Jones Industrial Average climbed 560 points, or 1.1%, as major indexes rose more than 1% midday. The Nasdaq Composite led gains with a 1.8% increase, while the S&P 500 advanced 1.2%.
Oil prices dropped sharply after reports of canceled military strikes against Iran, pushing the United States Oil Fund down 6%. Lower energy costs reduced inflation concerns, lifting both growth and value stocks. Strong AI earnings, particularly Alphabet’s 5.3% gain, also drove the rally.
Alphabet’s cloud revenue surged 82%, shifting market sentiment from capex worries to growth optimism. Other tech giants, including Nvidia, followed with gains of 3% or more.