[U.S. Stocks] Rise as Oil Plunges and Tech Shares Rebound on Eve of Election

Oil prices plunge 6% on hopes for U.S.-Iran peace talks
Major tech stocks, including Nvidia and Tesla, rebound

All three major U.S. stock indexes were rising on November 2, local time. With the midterm elections just one day away, international oil prices plunged, prompting buying focused on technology stocks.

As of 9:40 a.m. in New York, the Dow was up 403.37 points (0.78%) from the previous trading session at 52,173.67. The S&P 500, which is weighted toward large-cap stocks, had gained 36.08 points (0.48%) to 7,616.15, while the Nasdaq, which is weighted toward technology stocks, was up 194.12 points (0.76%) at 25,631.12.

The New York Stock Exchange in New York, U.S. / Correspondent Hwang Yunju

Investor sentiment improved as oil prices plunged more than 6% on hopes for diplomatic negotiations between the United States and Iran, while technology stocks that weakened last week rebounded.

Reports that Iran's supreme leader had granted the government some authority to pursue peace negotiations with the United States fueled hopes that geopolitical tensions in the Middle East could ease. The decline in oil prices, which had surged amid the war in Iran, also supported stocks by raising hopes that inflationary pressures could lessen.

At this hour, U.S. West Texas Intermediate crude for December delivery was down 6.40% from the previous session at $97.45 a barrel on the New York Mercantile Exchange. Brent crude for January delivery was trading at $106.59 a barrel on the ICE Futures Exchange, down 6.03% from the previous session.

Major technology stocks, which plunged last week amid concerns over the cost of artificial intelligence (AI) investment, also rebounded. Nvidia rose more than 1%, while Tesla and Amazon each gained more than 2%.

News that semiconductor company Marvell Technology had agreed to acquire Lumentum, a maker of optical communications components, for $115 billion (approximately 160 trillion won) also bolstered investor sentiment toward the AI industry. The deal will be an all-stock transaction, and Marvell plans to strengthen its competitive position in the high-speed optical communications technology needed for AI data centers through the acquisition.

Last week, major indexes on Wall Street fell across the board as concerns about the profitability of AI investments spread. The Nasdaq recorded its steepest monthly decline since March 2025. Some analysts say the recent correction in technology stocks reflects short-term supply-and-demand conditions and elevated share prices rather than a deterioration in the AI industry's fundamentals.

Warren Pies, a strategist at 3Fourteen Research, said in an interview with CNBC, "I don't think anything has fundamentally gone wrong with AI investment," adding that "the technical side is a separate issue."

Investors are also focused on the U.S. midterm elections, which will be held on November 3. Markets see the Democrats as likely to regain control of the House, but it remains unclear which party will hold the Senate majority.

Mike Dickson, head of strategy at Horizon Research, said, "There are concerns that shifts in power in Washington following the midterm elections could affect markets, but historically, stocks have remained relatively stable regardless of which party controls Congress."

This content was produced with the assistance of AI translation services.