The Dow Adds 560 Points as Oil Prices Fall Off a Cliff

U.S. stocks rallied sharply as oil prices fell, easing inflation fears and boosting risk appetite. The Dow rose about 560 points, while the Nasdaq and S&P 500 gained more than 1%. The main catalyst was a reported shift in U.S.-Iran tensions that pushed crude lower, with the United States Oil Fund dropping 6%. Growth and AI-related stocks also bounced after Alphabet’s strong cloud commentary and Nvidia’s rebound, helping offset Apple’s weakness after soft guidance. The article frames the move as a sentiment-driven reversal: concerns over oil, AI spending, and valuations that hurt markets in July were rapidly replaced by optimism. The piece also notes upcoming macro data, Caterpillar earnings, and SpaceX’s first public-company earnings report, suggesting volatility may remain elevated.