Oil plunges about 7% on U.S.-Iran hopes as Dow rises and Nasdaq falls before midterms — Nov 3, 2026

Top U.S. Stories

• Wall Street split on Monday. The Dow gained 0.41% to 51,983.98 while the S&P 500 slipped 0.51% to 7,541.40 and the Nasdaq fell 1.07% to 25,164.36, as money rotated out of tech and chipmakers. Why it matters: The market did not sell off across the board — investors moved from AI-linked names into cyclical, financial and defensive stocks.
• Oil plunged on hopes of U.S.-Iran diplomacy. Brent futures fell about 7.9% to below $105 and WTI fell about 7.5% to near $96. Why it matters: Lower crude can ease pressure on gasoline prices and inflation, but a rally built on talk, not a deal, can reverse quickly.
• Midterm elections are Tuesday. Investors positioned ahead of the vote that will decide whether Democrats can take control of Congress, per Reuters via Detroit News.
• Earnings: Palantir beat revenue and profit estimates and raised its full-year outlook, while Oracle fell about 5% after announcing a $20 billion capital raise.
• Iran said it is in “intensive” exchanges with Washington and offered to reopen the Strait of Hormuz under strict conditions, according to a news recap.

Compass Insight

Monday’s tape was less a market slump than a rotation. The Dow rose while the Nasdaq fell, a sign that money is moving away from crowded AI and chip trades rather than leaving stocks altogether. The oil drop matters for households — cheaper energy eases inflation pressure — but it rests on hopes of diplomacy, so it is fragile. In the short run, watch Tuesday’s midterm results and how markets react, whether crude holds its losses, and further AI earnings. Over the longer run, the question is whether calmer energy prices change the outlook for inflation and interest rates, and whether AI spending is justified by results. In Japan, the yen near 158 per dollar keeps import costs in focus.

Markets

• Nikkei 225: 63,081.86, down 208.25 points for a second straight decline, weighed by Kioxia’s plunge.
• USD/JPY: 157.9 (ECB reference rate, Nov 2).
• WTI crude: about $96.5 a barrel, down from $104.12 the prior session (Yahoo Finance).

Stocks in Focus

• Oracle — fell about 5% on its $20 billion debt and share sale plan.
• Palantir — beat estimates and raised its outlook.

Auto-generated and AI-written. Not investment advice.