Falling oil prices help calm worries about inflation, and Wall Street rallies

Oil prices eased Monday, helping calm fears that inflation could worsen and lifting U.S. stocks despite continued volatility. The S&P 500 rose 1% after a swinging July tied to higher oil costs linked to the war with Iran, plus investor questions about whether Big Tech’s heavy AI spending will convert into profits and whether chip shares ran too far. The Dow gained 711 points, or 1.4%, and the Nasdaq climbed 1.2% as of 10:15 a.m. Eastern. Brent crude fell 5.4% to $83.17 after President Donald Trump said he will pause new Iran strikes at allies’ urging. Treasury yields dropped, with the 10-year down to 4.68%. Airlines and fuel-heavy names rallied, while chipmakers lagged.