Nasdaq Opens 0.8% Higher While Dow Jumps 0.5% as Oil and Yields Ease to Start Week

U.S. stocks rallied on Monday as oil prices and Treasury yields slipped, with Wall Street looking to recover from a mostly lower week.

The Dow Jones Industrial Average popped 251 points, or 0.5%. The S&P 500 climbed 0.57%, while the Nasdaq Composite rose 0.8%.

Monday’s advance was aided by a 3% drop in U.S. crude to $97.09 per barrel. International benchmark Brent slid more than 3% as well to $100.50.

Those moves come after the latest escalation in hostilities in the Middle East over the weekend. Iran-backed Houthis said they attacked Saudi Arabia with missiles and drones on Saturday. Later in the day, the U.S. State Department warned Americans to reconsider traveling to the Middle East as the U.S. and Iran traded threats to resume attacks.

However, diplomacy between the U.S. and Iran could still be on the table in the near term, as President Donald Trump told Fox News he would probably be open to meeting with Iranian President Masoud Pezeshkian during this week’s UN General Assembly. JPMorgan analysts also noted recently that oil flows “remain surprisingly strong” despite the recent disruptions.

Treasury yields declined alongside the fall in oil. The 10-year Treasury note yield shed more than 3 basis points to 4.957%, as did the yield on the 30-year Treasury bond to 5.294%.