Dow rallies 1,100 points, Nasdaq jumps 2% as stocks climb out of postelection slump

Stocks surged on Monday, boosted by a decline in oil prices as well as gains in technology shares after last week's volatility.

The Dow Jones Industrial Average popped 1,113 points, or 2.2%, supported by gains in stocks such as Goldman Sachs and Caterpillar. The S&P 500 rose 2.3%, while the Nasdaq Composite gained 2.5%.

With Monday's rally, the Dow is now above the level it closed on Election Day. The S&P 500 and tech-heavy Nasdaq still remain slightly below, however.

Oil prices fell on Monday, lifting investor sentiment. U.S. West Texas Intermediate futures dropped 3% to around $87 per barrel. International benchmark Brent slid 4% to about $94 per barrel.

Friday's market partially rebounded from Thursday's brutal AI-driven sell-off, as chip stocks recovered on renewed buying. However, concerns linger in the wake of the Democrats' strong midterm results, with investors fearing that tighter regulations on data center construction, energy use, and development costs could slow the AI infrastructure boom.

The tech sector also focused on the bombshell announcement Sunday that Nvidia's board of directors is opening an investigation into co-founder and CEO Jensen Huang's relationship with a businesswoman who U.S. intelligence agencies say is a Chinese spy. Nvidia shares were last down 6%.

"Magnificent Seven" names were higher contrary to Nvidia. Amazon gained 3%, while Tesla and Alphabet climbed 5% and 2%, respectively. Microsoft also added 2%.

Other chip stocks advanced as well, with Broadcom popping 8% and Advanced Micro Devices jumping 12%. The iShares Semiconductor ETF (SOXX) — which dropped around 13% last week — rose more than 6%.