Stocks rise as oil prices slide before midterms

Stocks moved higher on Monday as oil prices fell sharply, while investors braced for a packed week of earnings results and the upcoming midterm elections.

The S&P 500 traded 0.3% higher, as did the Nasdaq Composite. The Dow Jones Industrial Average added 469 points, or 0.9%.

Brent crude tumbled more than 7% to around $104 per barrel. U.S. West Texas Intermediate futures also pulled back more than 7% to roughly $96.

Oil prices extended earlier gains amid hopes that the U.S. and Iran may resume peace talks, with Secretary of State Marco Rubio saying over the weekend that President Donald Trump “hasn’t made a decision” to attack Iran and that Washington would prefer to resolve the conflict “peacefully.” Iranian state media also reported that the country’s foreign minister said an agreement with is possible if the U.S. “demonstrates goodwill.”

Investors moved into key cyclical sectors. Consumer discretionary stocks led the way, with the group gaining 3%, while financials and industrials added more than 1%. Materials advanced 2%.

Technology, however, came under pressure yet again. Marvell Technology shares dropped 10%, while Lumentum shed 15% after the companies announced that Marvell is buying Lumentum in a $115 billion deal. Oracle shares also declined 6% after the company said it plans to sell $10 billion in common stock as well as $10 billion in bonds to finance its AI buildout.