U.S. stocks rallied Monday as falling oil prices eased inflation concerns and pushed Treasury yields lower, lifting the S&P 500 toward a record and sending the Dow Jones Industrial Average sharply higher. At 10:15 a.m. EDT, the S&P 500 was up 1%, while the Dow gained 711 points, or 1.4%. The Nasdaq Composite rose 1.2% as investors returned to risk assets after a volatile July. A supplied TradingView chart showed the S&P 500 trading at 7,578.73 shortly before noon, with the index holding near its session high after a steady advance. The Kobeissi Letter said the index was about 0.5% below a new all-time high. S&P Record Push․ Source: The Kobeissi Letter (@KobeissiLetter) Oil Drop Lifts Airlines and Lowers Treasury Yields Brent crude fell 5.4% to $83.17 a barrel after President Donald Trump held off on additional strikes against Iran, easing immediate concerns about crude shipments through the Persian Gulf. The decline reduced fears that higher energy costs would add to inflation and force interest rates higher. The 10-year Treasury yield fell to 4.68% from 4.75% late Friday. Lower yields can support stocks by reducing borrowing costs and making future corporate earnings more valuable in current terms. Airlines and cruise operators led the companies benefiting from cheaper fuel. United Airlines rose 6.7%, American Airlines gained 6.4% and Norwegian Cruise Line Holdings advanced 4.3%. The Chart Report described the Dow Jones U.S. Airlines Index as forming a large cup-and-handle pattern, a rounded recovery followed by a shorter consolidation. The pattern remains unconfirmed until the index breaks decisively above its earlier peak. The Dow Jones U.S. Airlines Index stood at 277.62 and was testing the upper edge of that long-term formation. Airline Breakout․ Source: The Chart Report (@TheChartReport) Market Breadth Supports the Rally Seven of the S&P 500’s 11 sectors traded higher, with communication services leading. Energy stocks lagged as crude prices declined. Advancing stocks outnumbered decliners by 1.89-to-1 on the New York Stock Exchange and 1.49-to-1 on the Nasdaq, indicating that the rally extended beyond a small group of large technology companies. The supplied market breadth dashboard showed 60% of NYSE stocks above their 40-day moving averages. It also recorded 208 bullish readings and 86 bearish readings, producing a bullish-to-bearish ratio of 2.42. However, its net-new-highs measure was declining, showing positive but uneven participation. Breadth Signal. Source: Felipe Guirao (@FelipeGuirao) Nasdaq-100 Rebounds as Chip Stocks Lag Large software and internet stocks supported the Nasdaq. Amazon rose 4.8% and reached a market value of $3 trillion for the first time, while Microsoft and Salesforce also advanced. Semiconductor stocks moved in the opposite direction. The Philadelphia Semiconductor Index fell 2.8%, while Micron Technology lost about 3.4% and Advanced Micro Devices declined 1.1%. Investors continued to assess whether rapid spending on artificial intelligence infrastructure will generate enough profit to support elevated chip-stock valuations. The supplied Nasdaq-100 daily chart showed the index rebounding to 28,656.28. However, it remained below its 50-day exponential moving average at 28,762.89. The relative strength index stood at 48.89, a neutral reading that showed improving momentum without an overbought signal. A move above 28,760 to 29,000 would strengthen the recovery, while 28,000 represents the first nearby support area. Nasdaq Rebound. Source: TradingView Manufacturing Data Strengthens Economic Outlook The Institute for Supply Management’s manufacturing index rose to 55.6 in July from 53.3 in June, reaching its highest level in more than four years. Readings above 50 indicate that manufacturing activity is expanding. Federal Reserve Bank of New York President John Williams said inflation should ease gradually if energy prices and tariffs have peaked. However, he said the Fed could raise rates if inflation does not return toward its 2% target. The central bank held its benchmark rate between 3.5% and 3.75% at its latest meeting. The S&P 500’s immediate technical test sits near 7,600, followed by the record zone. Initial support appears near 7,560 and 7,540. A sustained move above the record would support further gains, while a drop below 7,540 would weaken Monday’s intraday setup.
