The stock market started the week with a broad rally, recovering much of last week's steep losses as investors returned to AI-related stocks and a sharp decline in oil prices provided additional support. The S&P 500 (+2.4%), Nasdaq Composite (+2.7%), and DJIA (+2.2%) all finished with sizable gains, with the S&P 500 reclaiming its November 3 (Election Day) closing level of 7,542.60.

All eleven S&P 500 sectors finished higher, with nine posting gains of at least 1.4%. The industrials sector (+3.8%) led the advance, supported by strong rebounds in AI infrastructure names such as Teradyne (TER 246.00, +27.78, +12.73%) and Bloom Energy (BE 193.88, +20.64, +11.91%).

The information technology sector (+2.9%) was another standout, benefiting from a 6.9% surge in the PHLX Semiconductor Index, which recovered a sizable portion of last week's decline of more than 12%. Advanced Micro Devices (AMD 508.58, +59.54, +13.26%) was among the strongest performers in the S&P 500, extending Friday's rebound following its strong Q3 results and an upgrade to Outperform at Oppenheimer. NVIDIA (NVDA 178.67, -7.97, -4.27%), however, lagged amid reports that CEO Jensen Huang had an affair with an alleged Chinese spy, prompting an independent investigation by the company's board.

Mega-cap stocks elsewher also provided strong leadership, with Amazon (AMZN 266.93, +7.63, +2.94%) and Tesla (TSLA 378.05, +19.83, +5.54%) contributing to the consumer discretionary sector's 3.1% gain, while Meta Platforms (META 641.37, +31.22, +5.12%) helped lift the communication services sector (+2.1%). Alphabet (GOOG 286.01, +2.08, +0.73%) also benefited from the unveiling of two new configurations of its eighth-generation tensor processing units, expanding its offerings for enterprise AI workloads.

The Vanguard Mega Cap Growth ETF gained 2.9%, but the rally was far from concentrated in the largest technology stocks. The S&P 500 Equal Weighted Index (+2.3%) nearly matched its market-cap weighted counterpart, while the Russell 2000 (+3.2%) and S&P Mid Cap 400 (+3.2%) outperformed the major averages, reflecting strong participation across market capitalizations.

Falling oil prices provided another tailwind as optimism surrounding a potential diplomatic resolution to the U.S.-Iran conflict continued to build. President Trump said renewed strikes on Iran are "highly unlikely" as long as negotiations continue to make progress, according to CNN. Later reports from Al Arabiya suggested that a preliminary agreement on reducing Iran's uranium enrichment could be reached, with a proposed framework calling for the reopening of the Strait of Hormuz and the lifting of the naval blockade. Those reports have not been confirmed by U.S. officials. WTI crude oil futures settled $3.98 (-4.4%) lower at $86.90 per barrel.

Today's advance marked a meaningful recovery from last week's selloff, with renewed confidence in AI-related stocks, easing geopolitical concerns, and strong participation across sectors and market capitalizations helping restore some of the market's recent losses. Despite the rebound, the S&P 500 and Nasdaq Composite remain lower for the quarter, leaving the sustainability of today's buying interest an important consideration as investors look ahead to another round of AI-related earnings reports and key inflation data later this week.

U.S. Treasuries began the week with losses in shorter tenors while the long end resisted, keeping the long bond near its closing level from Friday. Treasuries held their ground through today's $58 billion 3-year note auction, even though that offering met weak demand. The 2-year note yield settled up three basis points to 4.56%, and the 10-year note yield settled up one basis point to 4.86%. 

• Russell 2000: +14.5% YTD
• S&P Mid Cap 400: +12.4% YTD
• S&P 500: +10.3% YTD
• DJIA: +9.0% YTD
• Nasdaq Composite: +8.7% YTD

Reviewing today's data:

• Wholesale Inventories increased 0.7% in September (Briefing.com consensus 0.6%) after rising a revised 0.6% (from 0.5%) in August.