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US Stocks Rally, Oil Prices Swing Lower11/09 09:41
The U.S. stock market is rallying Monday and clawing back more of its big
loss from last week as oil prices swing lower. The strength came even though
Nvidia, one of Wall Street's most influential stocks, sank.
NEW YORK (AP) -- The U.S. stock market is rallying Monday and clawing back
more of its big loss from last week as oil prices swing lower. The strength
came even though Nvidia, one of Wall Street's most influential stocks, sank.
The S&P climbed 1.9% and was on track for a second straight gain following a
wipeout on worries that Democratic victories in the U.S. midterm elections
could mean a slowdown in the construction for AI data centers. Despite its
manic recent swings, the main measure of Wall Street's strength is sitting only
3.8% below its all-time high set last month.
The Dow Jones Industrial Average was up 805 points, or 1.6%, as of 10:30
a.m. Eastern time, and the Nasdaq composite was 2.5% higher.
Stocks got a lift from a 4.1% drop for the price of a barrel of Brent crude
to $94.27. It's been coming down from more than $112 at the start of the month
amid uncertainty about what will happen with the war with Iran.
The latest leg lower came after President Donald Trump told CNN over the
weekend that a resumption of strikes is "highly unlikely" if the United States
sees progress in negotiations, though U.S. Secretary of State Marco Rubio said
Sunday that Iranian demands for ending the war had sometimes been "outrageous
and ridiculous."
Several strong profit reports from big U.S. companies also helped to lift
the market.
Constellation Energy added 6.3% after the power company reported both profit
and revenue for the summer that topped analysts' expectations. It's been
benefiting from deals announced recently to power data centers for Big Tech
companies.
Those data centers, and the blame they're getting from voters for increases
in power bills, are coming under increased scrutiny following Democratic sweeps
of statehouses in last week's election. The worry is that governments could
impose restrictions on the industry, which would fewer purchases of
artificial-intelligence chips, electricity and other products and services
around the AI industry.
Stocks linked to the AI build out were holding steadier on Monday. Advanced
Micro Devices rose 9.5% to recover some of its 11% loss from last week.
CoreWeave climbed 6.4% after tumbling 15.4% last week.
The stock that quickly became the face of the AI boom, Nvidia, fell 3.8%.
The chip company said it's investigating its CEO, Jensen Huang, after he
acknowledged an intimate relationship with a business executive who, according
to The New York Times, U.S. intelligence determined was gathering information
for China.
Nvidia's board said it has "no reason to believe" that either national
security or Nvidia secrets were compromised, but that its inquiry would examine
all available information.
Guo Jiakun, spokesperson for China's Ministry of Foreign Affairs, called the
allegations "nothing but smears against China."
In stock markets abroad, indexes were mixed in China amid mostly modest
moves. Stocks rose 0.3% in Shanghai and dipped 0.1% in Hong Kong. Indexes were
stronger in Japan, where the Nikkei 225 jumped 2.3%, and in Europe, where
France's CAC 40 rose 1.2%.
In the bond market, Treasury yields were holding relatively steady following
big moves last week. The yield on the 10-year Treasury held at 4.86%, where it
was late Friday. It had topped 5.30% last month and reached its highest level
in two decades when worries were spiking about high inflation and the U.S.
government's big debt, among other things.
A pullback in Treasury yields should help pull down rates for mortgages and
other kinds of loans. It also helps give prices a boost for stocks and other
investments.
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