Dow Rises More Than 500 Points as Oil Falls Below $100 on Iran Diplomacy

The Dow Jones Industrial Average rose more than 500 points in early trading on Monday, November 2, up 1.1 percent, as oil fell below 100 dollars a barrel on signs of diplomacy between the United States and Iran. The S and P 500 added 0.6 percent and the Nasdaq Composite added 0.8 percent, Investopedia reported.

The rally built through the open. Just after the open, Investor's Business Daily put the Dow up 0.8 percent, or roughly 400 points, with the S and P 500 up 0.5 percent and the Nasdaq up 0.6 percent.

Oil drops below 100 dollars

WTI crude futures were down nearly 7 percent at 97.25 dollars a barrel in recent trading, Investopedia reported. FXStreet put WTI near 96.65 dollars at 14:34 UTC, down more than 5 percent, after the contract hit 104.03 dollars on Friday, October 30, its highest level since May.

Barron's gave a similar picture across the market. Brent crude futures fell 6.3 percent to 106.22 dollars a barrel, and WTI futures slumped 6.7 percent to 97.39 dollars a barrel. Brent January futures had risen nearly 16 percent to 113.40 dollars by Friday's close.

Diplomacy moves the price

The fall gathered pace after Secretary of State Marco Rubio said over the weekend that the United States would prefer a peaceful resolution with Iran. FXStreet reported that Iranian President Masoud Pezeshkian said the Supreme Leader had granted the government certain powers in negotiations, according to ISNA, and that Axios reported President Donald Trump favours giving diplomacy with Iran more time.

Iranian Foreign Minister Abbas Araghchi described consultations through Qatari and Pakistani mediators as "very intensive", and said progress depended on Washington's "political rationality", FXStreet reported.

The signals were not one sided. At a campaign rally in Iowa on Sunday, November 1, Trump said "at some point we're going to have to give them the hammer", in remarks reported by FXStreet. No final agreement between the United States and Iran has been announced, and FXStreet noted that the risk of renewed US military action after Tuesday's midterm elections remains.

Producers hold output steady

Supply policy did not change over the weekend. Seven OPEC+ producers agreed on Sunday, November 1, to keep December production targets unchanged, FXStreet reported. The group meets again on November 29 to review January plans.

Chip stocks split, gold rebounds

Stock moves were mixed inside the rally. Nvidia shares rose 1.7 percent in early trading. Intel fell 2 percent after plunging nearly 30 percent on Friday, October 30. Marvell Technology dropped 5 percent after news that it is buying Lumentum in a deal that values the optical components maker at 115 billion dollars, Investopedia reported.

Gold futures rose 1.8 percent to 3,970 dollars an ounce, after falling below 3,900 dollars on Friday to their lowest level in more than a year. Bitcoin traded at 77,800 dollars, up from Friday's low just above 76,000 dollars. The 10 year Treasury yield stood at 4.89 percent, down from 4.93 percent on Friday and at its lowest level since early September.

Apple and Palantir report earnings after markets close today, so the session still has a second test to come. Friday's technology rout pushed the Nasdaq Composite to its biggest monthly decline since March 2025.

This is not financial advice. Do your own due diligence.