Markets

Dow Gains 1% at Midday as Oil Sinks and ISM Factory Index Rises to 55.5; Oracle and Marvell Slide

U.S. stocks rose Monday as oil fell about 7% on U.S.-Iran diplomacy hopes and ISM's factory index rose to 55.5, while Oracle and Marvell fell; Apple reports after the close.

Nov 02, 2026 - 12:23

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U.S. stocks rose on Monday, November 2, 2026, recovering part of Friday's sharp selloff as oil prices tumbled on hopes for diplomacy between the United States and Iran and a closely watched survey showed factory activity picked up in October. As of about 12:15 p.m. ET, the Dow Jones Industrial Average was up about 536 points, or 1.04%, at 52,306.26, the S&P 500 was up 0.53% at 7,620.42 and the Nasdaq Composite was up 0.6% at 25,589.99, according to Yahoo Finance data. The small-cap Russell 2000 was up about 1%.

The S&P 500 came into Monday after its third straight losing week and was within 2.5% of its all-time high late in the morning, the Associated Press reported. At the opening bell, the Dow had risen 403.09 points, or 0.78%, to 52,173.40, Reuters reported.

Oil and yields fall

Brent crude fell 7.3% to $105.14 a barrel and U.S. West Texas Intermediate fell about 7% to $96.87 as of 11:25 a.m. ET, CNBC reported, after senior U.S. and Iranian officials signaled openness to a diplomatic solution to the conflict that has disrupted energy markets for eight months. The 10-year Treasury yield eased to about 4.88% from 4.93% on Friday, Yahoo Finance data show.

At 10:02 a.m. ET, seven of the 11 major S&P 500 sectors were higher, with consumer discretionary leading and energy down more than 2.1%, Reuters reported. Advancing issues outnumbered decliners by a 3.13-to-1 ratio on the New York Stock Exchange. Exxon Mobil was down about 2.7% and Chevron about 2.2% at midday.

Factory survey strengthens

The Institute for Supply Management's Manufacturing PMI rose to 55.5 in October from 54.5 in September, the 10th straight month of expansion, the group said in its report released at 10 a.m. ET. The Production Index climbed to 59, its highest since November 2021, and the New Orders Index rose to 55.5. The Employment Index slipped to 52.4, and the Prices Index fell to 75.2 from 77.9 while still signaling rising costs. FXStreet said economists had expected a reading of 54.6.

ISM survey chair Susan Spence said prices were still being driven by "increases in steel and aluminum prices that impact the entire value chain," tariffs on many imported goods and "increases in petroleum-based products as a result of the Middle East conflict." General sentiment in respondents' comments worsened for a third month, with 34% of comments positive and 66% negative, IndustryWeek reported.

Biggest movers

Oracle was down about 6% after filing plans to sell $10 billion of common stock and $10 billion of senior notes to finance its artificial intelligence buildout, CNBC reported. Oracle said proceeds may be used for capital expenditures, debt repayment and future investments. Its shares are down 33% in 2026, CNBC said.

Marvell Technology was down about 8.7% at midday after the chipmaker said it is buying optical components maker Lumentum in a $115 billion all-stock deal including debt, Reuters reported. Lumentum shares were down about 14% by midday, Yahoo Finance data show. Intel fell about 4.5%, extending losses after what Reuters described as the stock's worst one-day fall since the 1980s on Friday. Amazon was up about 4.7%, and Apple was down about 1.9% ahead of its quarterly results due after the bell.

Week ahead

Americans vote in midterm elections on Tuesday, and the government's October payrolls report is due Friday. Chipmaker AMD is also scheduled to report this week. "It is likely to remain volatile through the earnings season, and individual companies may get punished by the market if they're not fulfilling the market's asks on all of those fronts," said Kiran Ganesh, multi-asset strategist at UBS Global Wealth Management, according to Reuters.

Traders put about a 77% probability on a Federal Reserve rate increase in December, down from 80% a week earlier, based on CME Group's FedWatch tool, CNBC reported, citing Reuters.