The S&P 500 Index ($SPX) (SPY) closed up +2.35% on Monday, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +2.15%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +3.40%. December E-mini S&P futures (ESZ26) rose +2.35%, and December E-mini Nasdaq futures (NQZ26) rose +3.39%.
US stock indices settled sharply higher on Monday as dip buyers stepped in to buy recently beaten-down chipmakers and AI-infrastructure stocks. The Magnificent Seven technology stocks also rallied on Monday, supporting gains in the broader market. In addition, market sentiment improved after WTI crude oil sank more than -4% as diplomatic efforts to end the war in Iran continue.
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Monday's US economic news was supportive for stocks after Sep wholesale trade sales rose +2.8% m/m, stronger than expectations of +1.1% m/m and the largest increase in four months.
On the negative side for stocks, Nvidia closed down more than -4% after the company’s board launched an investigation into CEO Huang, following his admission of an affair with a woman identified as a suspected Chinese spy.
Hawkish Fed comments on Monday were bearish for stocks and bonds. Chicago Fed President Austan Goolsbee said US employment and growth are pretty stable, but inflation is starting to kick up in services, and we've got to come to terms with inflation failure. Also, Richmond Fed President Tom Barkin said robust demand and stubbornly high inflation mean interest rates will need to go higher, though any rate hikes will need to be done at a careful pace.
Dec WTI crude oil prices (CLZ26) tumbled more than -4% on Monday to a 2.25-month low on optimism that diplomatic progress is gaining momentum to end the US-Iran war, which could lead to a full resumption of energy supplies from the Middle East. President Trump said it's "highly unlikely" he'll order more strikes against Iran if peace talks show progress. Axios reported that President Trump met the prime minister of Qatar on Monday to focus on negotiations with Iran. Crude oil losses accelerated Monday after news outlet Israel Hayom reported that Iran dropped its demand to control the Strait of Hormuz and collect transit fees from vessels passing through the waterway.
However, Secretary of State Rubio played down the chances of a breakthrough, saying Iran's demands to date are unacceptable. Also, the US launched overnight attacks on specific targets on the Iranian island of Qeshm in the Strait of Hormuz.
Stocks are supported by the prospect of solid quarterly earnings. According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +31% from a year earlier, up from a July estimate of 22%. As of Monday, 447 of the S&P 500 companies have reported results, with 84% beating estimates.
Overseas stock markets settled higher on Monday. The Euro Stoxx 50 closed up +1.94%. China’s Shanghai Composite closed up +0.32%. Japan's Nikkei-225 Stock Average closed up +2.33%.
Interest Rates
December 10-year T-notes (ZNZ6) closed down -1.5 ticks on Monday. The 10-year T-note yield rose +0.8 bp to 4.866%. T-notes gave up an early advance on Monday and turned lower as a sharp rally in stocks curbed safe-haven demand for T-notes. Also, hawkish Fed comments on Monday weighed on T-notes after Chicago Fed President Austan Goolsbee said US employment and growth are pretty stable, but inflation is starting to kick up in services, and Richmond Fed President Tom Barkin said robust demand and stubbornly high inflation mean interest rates will need to go higher. T-note prices remained under pressure amid weak demand for the Treasury’s $58 billion auction of 3-year T-notes that had a bid-to-cover ratio of 2.53, below the 10-auction average of 2.63.
T-notes initially moved higher on Monday amid a -4% plunge in WTI crude oil prices to a 2.25-month low, which weakened inflation expectations. The 10-year breakeven inflation rate tumbled to a 3.25-month low of 2.210% on Monday.
The markets are now pricing in an 82% chance of a +25 bp rate hike at the FOMC’s next meeting on December 8-9.
European government bond yields finished mixed on Monday. The 10-year German bund yield rose +0.9 bp to 3.264%. The 10-year UK gilt yield fell -2.4 bp to 5.130%.
The Eurozone Nov Sentix investor confidence index fell -0.3 to 2.4, stronger than expectations of 2.0.
German trade news was better than expected as German Sep exports rose +2.0% m/m, stronger than expectations of +0.5% m/m and the largest increase in 7 months. Also, Oct imports rose +4.2% m/m, stronger than expectations of +0.5% m/m and the largest increase in nearly 1.75 years.
ECB President Christine Lagarde said, "We know that inflation numbers will remain high in the quarters to come and the higher they are, and the longer they remain high, the greater the risk to our medium-term target."
The markets are now pricing in an 83% chance of a +25 bp rate hike at the ECB’s next policy meeting on December 17.
US Stock Movers
The Magnificent Seven technology stocks, sans Nvidia, rallied sharply on Monday to provide support to the overall market. Tesla (TSLA) and Meta Platforms (META) closed up more than +5%, and Amazon.com (AMZN) and Microsoft (MSFT) closed up more than +3%. Also, Apple (AAPL) closed up more than +2%, and Alphabet (GOOGL) closed up more than +1%.
Chipmakers and AI-infrastructure stocks rose sharply on Monday, a bullish factor for the broader market. The iShares Semiconductor ETF (SOXX) closed up more than +6%. Advanced Micro Devices (AMD) closed up more than +13%, and Applied Materials (AMAT) closed up more than +11%. Also, Lam Research (LRCX) and Seagate Technology Holdings Plc (STX) closed up more than +10%, and Western Digital (WDC), Marvell Technology (MRVL), and KLA Corp (KLAC) closed up more than +9%. In addition, Analog Devices (ADI) and Broadcom (AVGO) closed up more than +8%, and ARM Holdings Plc (ARM),Micron Technology (MU), ASML Holding NV (ASML), Sandisk (SNDK), and Texas Instruments (TXN) closed up more than +6%. Finally, Microchip Technology (MCHP) and Intel (INTC) closed up more than +5%.
Cloud infrastructure stocks surged on Monday as sentiment improved toward AI stocks. Lumentum Holdings (LITE) closed up more than +11%, and Arista Networks (ANET) and Nebius Group NV (NBIS) closed up more than +9%. Also, Applied Digital (APLD) closed up more than +8%, CoreWeave (CRWV) closed up more than +6%, and Oracle (ORCL) closed up more than +3%.
Airlines and cruise line operators moved higher Monday after WTI crude oil prices sank by more than -4%, lowering fuel costs and boosting the profitability of the companies. American Airlines Group (AAL) and Alaska Air Group (ALK) closed up more than +7%, and United Airlines Holdings (UAL) closed up more than +6%. Also, Delta Air Lines (DAL) closed up more than +5%, and Southwest Airlines (LUV) and Carnival (CCL) closed up more than +4%. In addition, Royal Caribbean Cruises (RCL) closed up more than +3%, and Norwegian Cruise Line Holdings (NCLH) closed up more than +2%.
Trucking and freight stocks rallied on Monday after WTI crude oil prices plunged more than -4% to a 2.25-month low, which lowers fuel costs and improves the profitability of the companies. XPO Inc (XPO) closed up more than +6%, and Knight-Swift Transportation Holdings (KNX) closed up more than +5%. Also, FedEx Freight Holding (FDXF) closed up more than +4%, and Saia Inc (SAIA), ArcBest (ARCB), JB Hunt Transport Services (JBHT), Old Dominion Freight Line (ODFL), and Marten Transport Ltd (MRTN) closed up more than +3%. In addition, CH Robinson Worldwide (CHRW) and United Parcel Service (UPS) closed up more than +2%.
QXO Inc. (QXO) closed up more than +19% after reporting preliminary Q3 net sales of about $4.9 billion.
Immunovant (IMVT) closed up more than +15% after reporting Q2 cash and cash equivalents of $722.3 million, well above the consensus of $641.7 million.
Ferguson Enterprises (FERG) closed up more than +11% after raising guidance on full-year net sales to up +7% from a previous view of mid-single digits.
NRG Energy (NRG) closed up more than +10% after selling 4.9 GW of natural gas assets to LS Power for $4 billion in cash.
Roivant Sciences (ROIV) closed up more than +4% after reporting Q2 R&D expenses of $145.7 million, below the consensus of $196.1 million.
Ionis Pharmaceuticals (IONS) closed down more than -21% after forecasting full-year revenue of $875 million to $900 million, below the consensus of $925.4 million.
Monday.com (MNDY) closed down more than -9% after forecasting Q4 revenue of $380 million to $382 million, weaker than the consensus of $385.7 million.
Nvidia (NVDA) closed down more than -4% to lead losers in the Dow Jones Industrials and the Nasdaq 100 after the company’s board launched an investigation into CEO Huang, following his admission of an affair with a woman identified as a suspected Chinese spy.
Earnings Reports (11/10/2026)
CoreWeave Inc (CRWV), On Holding AG (ONON), TransDigm Group Inc (TDG).
On the date of publication, Rich Asplund did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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