The Dow Adds 560 Points as Oil Prices Fall Off a Cliff

U.S. equity markets surged Monday as crude oil prices collapsed following a sharp diplomatic pivot. The Dow Jones Industrial Average gained 560 points, up 1.1%, while the S&P 500 climbed 1.2% and the Nasdaq Composite jumped 1.8%.

The rally was triggered by President Trump's decision to pursue diplomatic negotiations with Iran rather than military action, sending oil prices sharply lower and easing inflation concerns. The de-escalation removed a key risk premium from energy markets that had weighed on equities in recent sessions.

Technology stocks led the advance, with the Nasdaq outpacing broader benchmarks. Renewed optimism around artificial intelligence spending reinforced the move higher after major tech companies reported strong quarterly earnings, though the rally extended well beyond mega-cap names as lower oil prices improved the outlook for corporate margins across sectors.

The combination of geopolitical relief and robust tech fundamentals delivered the session's risk-on tone, with all three major indices closing near session highs.