Stock market today: Wall Street climbs ahead of a big week for Big Tech as oil drops nearly 6%

NEW YORK (AP) — U.S. stocks are climbing Monday ahead of a big week for profit reports from Big Tech stocks. Oil prices, meanwhile, are tumbling, and a barrel of U.S. crude is on track for its worst loss in more than two years.

The S&P 500 was 0.5% higher in early trading. The main measure of the U.S. stock market is coming off its first losing week in the last seven, but it’s still near its all-time high set earlier this month.

The Dow Jones Industrial Average was up 285 points, or 0.7%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was approaching its all-time high set in July with a gain of 0.6%.

Big Tech stocks helped lead the way, and five of the behemoths known as the “Magnificent Seven” are on this week’s schedule to report their latest profits. These high-flying stocks have been at the forefront of Wall Street for years and have grown so big that their movements can singlehandedly shift the S&P 500.

After suffering a summertime swoon on worries that their stock prices had risen too quickly when compared with their profits, Alphabet, Meta Platforms, Microsoft, Apple and Amazon are under pressure this week to deliver big enough growth to justify the recoveries for many of their share prices.

Another member of the Magnificent Seven, Tesla, soared to one of the best days in its history last week after reporting a better profit than analysts expected.

Monday’s gains for Big Tech helped offset drops for stocks in the oil-and-gas industry, which were hurt by the plunging price of oil. Exxon Mobil’s 1.4% drop and ConocoPhillips’ slide of 1.7% were two of the heaviest weights on the S&P 500.

A barrel of benchmark U.S. crude fell 5.9%, and Brent crude, the international standard, slid 5.9%. It was the first trading for them since Israel attacked Iranian military targets on Saturday in retaliation for an earlier barrage of ballistic missiles. Israel’s attack was more restrained than some investors had feared it could be, and it raised hopes that a worst-case scenario may be avoided.

Beyond the violence that is taking a human toll, the worry in financial markets is that an escalating war in the Middle East could cut off the flow of crude from Iran, which is a major oil producer. Such worries had sent the price of Brent crude up to nearly $81 per barrel in early October, despite signals that plenty of oil is available for the global economy. It’s since fallen back toward $71.

Financial markets are also dealing with the volatility that usually surrounds a U.S. presidential election, with Election Day fast approaching in two Tuesdays. Markets have historically been shaky heading into an election, only to calm afterward regardless of which party wins.

The trend affects both the stock and the bond markets. In the bond market, Treasury yields were holding relatively steady after rising sharply for most of this month.

The yield on the 10-year Treasury was holding at 4.24%, where it was late Friday. But it’s still well above the roughly 3.60% level where it was near the start of October.

Yields have climbed as report after report has shown the U.S. economy remains stronger than expected. That’s good news for Wall Street, because it bolsters hopes the economy can escape from the worst inflation in generations without the painful recession that many had worried was inevitable.

But it’s also forcing traders to ratchet back forecasts for how deeply the Federal Reserve will cut interest rates, now that it’s just as focused on keeping the economy humming as getting inflation lower. With bets diminishing on how much the Fed will ultimately cut its overnight interest rate, Treasury yields have also been given back some of their earlier declines.

In stock markets abroad, Japan’s Nikkei 225 rose 1.8% after the Japanese Prime Minister Shigeru Ishiba’ s ruling coalition lost a majority in the 465-seat lower house in a key parliamentary election Sunday.

Stock indexes were mixed elsewhere in Asia and Europe.

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AP Business Writers Yuri Kageyama and Matt Ott contributed.

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