Dow bounces 400 points to start the week as oil prices fall back to $95 a barrel

Stocks rose on Monday, while oil prices pulled back as Wall Street tried to recover from another losing week, with investors monitoring the latest developments of the Iran war.

The Dow Jones Industrial Average added 404 points, or 0.9%. The S&P 500 rose 1%, and the Nasdaq Composite gained 1.3%.

Meta shares gained about 2% on a report — which the company has called “speculative” — that it is planning to lay off more than 20% of its workforce. Additionally, Nvidia shares rose around 2% ahead of its GTC conference, which begins Monday.

The moves come after the S&P 500 notched its third losing week in a row and closed at its lowest level of the year on Friday.

Oil prices rallied last week, with Brent crude settling above $100 per barrel for the first time since 2022. Crude soared as traffic in the Strait of Hormuz, a critical shipping route, has been effectively halted since the war began.

In Monday trading, WTI crude traded 3% lower at just $95 a barrel. It traded above $100 per barrel overnight. Brent crude fell 1% to around $102 a barrel.

Oil prices declined after Treasury Secretary Scott Bessent told CNBC Monday that the U.S. is allowing Iranian oil tankers pass through the Strait of Hormuz. Also aiding the move out of oil was a Wall Street Journal report stating that the U.S. will announce soon a coalition of countries to escort ships through the Strait, citing officials.