Wall Street rebounds as oil prices fall and election uncertainty lifts

US stock markets opened November with a recovery following October’s technology-led selloff, driven by a sharp decline in oil prices and renewed demand for industrial and consumer stocks. The Dow Jones Industrial Average rose approximately 1.2% to 52,380.83 during Monday morning trading, while the S&P 500 and Nasdaq Composite also advanced as investors assessed whether recent losses created opportunities to increase equity exposure.

Brent crude fell approximately 6% toward $106 per barrel after reports that the US and Iran could resume negotiations to reopen the Strait of Hormuz. Lower energy prices are expected to reduce transportation costs and ease inflation pressures, benefiting airlines and cruise operators, though the impact on the Dow is mixed due to its inclusion of energy producers like Chevron.

Investment banks including Morgan Stanley and JPMorgan suggest the market is broadening beyond large technology firms. Morgan Stanley noted that approximately 60% of Russell 3000 constituents have experienced corrections exceeding 20% since June, indicating much of the selling has already occurred outside major indexes. Both banks maintain constructive medium-term outlooks, with Morgan Stanley and JPMorgan targeting an S&P 500 level of 8,000 by year-end, while Goldman Sachs projects the index could reach 8,700 over the next 12 months.

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