Wall Street Rebound: Dow Jumps 407 Points as AI Stocks Recover and Oil Falls

Wall Street rebounded on Monday, November 2, 2026, as the Dow Jones Industrial Average jumped 407 points, technology and artificial intelligence stocks recovered from a bruising October, and oil prices fell below $100 a barrel on hopes that talks involving Iran and Qatar could ease Middle East supply risks. The Wall Street rebound gave investors their first real relief after a week in which all three major indexes fell sharply, and it arrived on the eve of the November 3 midterm elections, with a heavy earnings calendar led by Apple after the closing bell.

Key Points

• The Dow Jones rose 407 points on Monday as US stocks opened higher, with the S&P 500 up 0.48% and the Nasdaq Composite up 0.69%.
• AI stocks recovered after October's rout: Nvidia rose 1.6%, while SpaceX and Alphabet gained more than 1% each in early trading.
• Brent crude fell around 5% to $106.63 a barrel and US West Texas Intermediate dropped more than 6.4% to $97.44 on Iran diplomacy hopes.
• Friday's sell-off had sent the Dow down 1.1% to 51,770.31, the S&P 500 down 1.8% to 7,580.07 and the Nasdaq down 2.9% to 25,437.
• October cost the Nasdaq-100 more than $2.5 trillion in market value and left it close to correction territory, while the Dow gained nearly 2% for the month.

What Happened

US stocks opened higher on Monday as technology and artificial intelligence shares steadied after a dismal October, and investors turned their attention to the midterm elections and another busy week of earnings. The Dow Jones was up 407 points in early trading, the S&P 500 gained 0.48% and the Nasdaq Composite advanced 0.69%, according to market reports on Monday morning. Futures had pointed to a steadier open before the bell, with Dow futures up 0.61%, S&P 500 futures up 0.54% and Nasdaq futures up 0.84% in the pre-market session.

The recovery followed a sharp sell-off last week, when concerns about the scale of AI investments and the returns they could generate weighed on major technology companies. On Friday alone, the Dow Jones Industrial Average slid 1.1%, or 572.25 points, to close at 51,770.31, the S&P 500 declined 1.8%, or 140.32 points, to finish at 7,580.07, and the tech-heavy Nasdaq tumbled 2.9%, or 747.73 points, to end at 25,437. The CBOE Volatility Index, Wall Street's fear gauge, jumped 12.91% to 19.42, and almost 19.87 billion shares changed hands, above the recent 20-session average of 17.26 billion.

For the week, all three indexes finished lower. The Nasdaq ended down 2%, the S&P 500 lost 0.9% and the Dow ended 0.6% lower. October told a similar story: the Nasdaq recorded its worst month since March 2025, ending 5.3% lower, the S&P 500 finished 0.9% lower, and the Dow ended the month 1.7% higher as investors shifted toward more defensive sectors, particularly health care.

Background: October's AI Reckoning

The October rout was driven by a reassessment of the artificial intelligence trade that had powered markets for much of the year. Investors questioned whether the enormous sums being poured into AI infrastructure — by some estimates around $800 billion in hyperscaler capital spending in 2026 — would translate into near-term cash flow. Reports that OpenAI had reduced its latest funding-round target by $10 billion intensified those doubts, as did reports that Blackstone had told investors Anthropic might not secure an investment-grade credit rating following its planned initial public offering. Investors are also questioning the growing use of debt to finance AI infrastructure, particularly as borrowing costs rise.

The Nasdaq-100 shed more than $2.5 trillion in market value during October and came close to entering correction territory, defined as a fall of 10% from a recent peak. The Nasdaq and S&P 500 recorded monthly losses, while the Dow gained nearly 2% as investors rotated into defensive sectors. The pressure was visible in individual names too: Intel suffered its worst one-day decline since the 1980s on Friday after issuing a weaker-than-expected fourth-quarter revenue forecast and saying it did not expect to generate positive cash flow this year. Intel fell another 2.78% on Monday as investors also weighed slowing PC demand and the financial pressures of its manufacturing operations.

Monday's session also had a fresh economic tailwind. The Institute for Supply Management's manufacturing index rose to 55.5 in October from 54.5 in September, beating forecasts, with new orders at 55.5 and exports rising — a sign that factory activity, which covers about 9.4% of the economy, remained firmly in expansion. That report, covered in detail by US News Pulse, helped underpin the early gains alongside the oil-price drop.

Wall Street Rebound Lifts AI Stocks After October Rout

Most megacap technology and growth stocks traded higher on Monday. SpaceX and Alphabet were among the early gainers with more than 1% gains, and Nvidia edged 1.6% higher, helping lift technology-sector sentiment. The rebound was broad enough to lift the major indexes even as some familiar drags persisted: Apple shares edged 0.47% lower ahead of its quarterly results, scheduled for release after Monday's closing bell, and Intel extended its slide.

Elsewhere in individual stocks, Estée Lauder fell 0.85% even after raising its annual sales and profit forecasts, citing resilient demand ahead of the holiday season. AT&T, Verizon and T-Mobile each fell following a report that SpaceX was in discussions to acquire EchoStar's Boost Mobile wireless service or gain access to its network; EchoStar shares rose 2%.

Oil provided the other big boost to risk appetite. Brent crude futures declined around 5% to $106.63 a barrel, while US West Texas Intermediate futures dropped more than 6.4% to $97.44, after reports of discussions between Iranian and Qatari officials over a potential agreement to end the US-Israeli war on Iran. The talks raised hopes that disruptions to energy supplies from the Middle East could ease, and the pullback in crude helped support stocks after energy-market concerns had contributed to market volatility in recent weeks.

Reactions and Quotes

Market coverage on Monday framed the rebound as relief rather than celebration. Analysts noted that the Nasdaq-100's October loss of more than $2.5 trillion had left the index close to correction territory, and that Monday's gains, while welcome, still left the major benchmarks well short of undoing last week's damage. The contrast with Friday's session was stark: Friday's 2.9% Nasdaq drop was its worst single-day percentage fall in nearly five months, with investors dumping AI-related stocks and taking shelter in defensive assets.

The oil market's reaction was equally telling. Brent crude retreated from four-year highs toward $111 a barrel earlier on Monday before sliding further, as investors weighed hopes of a diplomatic breakthrough in the Middle East against the risk of renewed US military action against Iran. Iranian sources, meanwhile, were reported to believe a new US attack was still more likely than a deal, a reminder that the diplomacy driving oil lower remains fragile.

Why It Matters

Monday's rebound matters because it tests whether October's AI sell-off was a healthy correction or the start of something deeper. The AI trade has carried an unusually large share of this year's market gains, and the doubts now swirling around it — about spending, debt, returns and valuations — go to the heart of the rally. If earnings this week, led by Apple after Monday's close and AMD, Qualcomm, McDonald's and Uber later in the week, show that AI spending is converting into revenue, the rebound could hold. If they disappoint, Monday's gains could prove to be a brief pause in a longer reassessment.

The timing adds another layer. Tuesday's midterm elections will determine whether Democrats gain control of Congress from Republicans, with Democrats widely expected to win the House while control of the Senate remains uncertain. Markets have historically preferred divided government for its check on sweeping policy change, but a decisive result either way could move sectors from health care to energy to technology. Friday's October nonfarm payrolls report, with economists polled by Dow Jones expecting 55,000 jobs added, will then give the Federal Reserve its next major read on the labour market after it held rates at 3.75% to 4.00% last week.

What Happens Next

Investors will watch three things in the coming days. First, Apple's results after Monday's close, alongside Palantir, will set the tone for the rest of earnings season, with 464 companies reporting this week. Second, Tuesday's midterm results will reshape the policy backdrop for the next two years. Third, Friday's jobs report will feed directly into expectations for the Fed's December meeting, where economists currently expect another rate hike. Oil traders, meanwhile, will watch the Iran-Qatar talks for any concrete agreement — or any sign that diplomacy has stalled and crude is headed back up.

For now, Monday's session offered a reminder of how quickly sentiment can turn. A month that wiped trillions from the Nasdaq-100's value ended with a single morning of green screens, lower oil and renewed appetite for the very AI stocks investors had spent October selling. Whether that appetite lasts is the question the rest of the week will answer.

Frequently Asked Questions

How much did the Dow rise on Monday, November 2, 2026?
The Dow Jones gained 407 points in early Monday trading as US stocks rebounded, with the S&P 500 up 0.48% and the Nasdaq Composite up 0.69%.

Why did oil prices fall on Monday?
Brent crude fell around 5% to $106.63 and WTI dropped more than 6.4% to $97.44 on hopes that talks between Iranian and Qatari officials could ease Middle East supply disruption risks.

What happened to stocks on Friday?
Friday's sell-off sent the Dow down 1.1% to 51,770.31, the S&P 500 down 1.8% to 7,580.07 and the Nasdaq down 2.9% to 25,437, the Nasdaq's worst day in nearly five months.

How much value did the Nasdaq-100 lose in October?
The Nasdaq-100 lost more than $2.5 trillion in market value during October and came close to entering correction territory.

What is next for markets this week?
Apple reports after Monday's close, midterm election results arrive Tuesday, and the October jobs report is due Friday, with 55,000 new jobs expected.

Related coverage: ISM Manufacturing PMI Jumps to 55.5 in October as Factory Orders Rise and Meta $95 Billion AI Raise Leads a $198 Billion Day of AI Spending.