Wall Street rallies as oil slides, but Nvidia sinks 6.3% on probe into CEO Huang

The S&P 500 rose 1.1% Monday and was headed for a second consecutive gain, recovering ground lost in last week's selloff. The Dow Jones Industrial Average added 606 points, or 1.2%, by 9:35 a.m. Eastern time, and the Nasdaq composite climbed 1.4%.

Oil supplied the tailwind. Brent crude dropped 5.5%, leaving a barrel at $92.96, down from more than $112 earlier this month. President Donald Trump told CNN over the weekend that a resumption of strikes is "highly unlikely" if the United States sees progress in negotiations, though Secretary of State Marco Rubio said Sunday that Iranian demands for ending the war had sometimes been "outrageous and ridiculous."

Nvidia was the big drag. The chipmaker fell 6.3% after saying it is investigating CEO Jensen Huang, who acknowledged an intimate relationship with a business executive that U.S. intelligence determined was gathering information for China, according to The New York Times. Nvidia's board said it has "no reason to believe" national security or company secrets were compromised, and that its inquiry would examine all available information. Guo Jiakun, a spokesperson for China's Ministry of Foreign Affairs, called the allegations "nothing but smears against China."

Other AI-linked names steadied. Advanced Micro Devices jumped 5.5%, clawing back part of an 11% loss from last week, while CoreWeave slipped another 0.3% after tumbling 15.4%. Constellation Energy rose 0.8% after the power company beat analyst expectations on summer profit and revenue, boosted by recent deals to supply data centers for Big Tech. Democratic sweeps of statehouses last week have put those data centers under scrutiny over rising power bills, with investors worried governments could restrict the industry.

Overseas, the Nikkei 225 jumped 2.3% and France's CAC 40 rose 1%, while Shanghai added 0.3% and Hong Kong dipped 0.1%. In bonds, the 10-year Treasury yield edged down to 4.85% from 4.86% late Friday, after topping 5.30% last month for its highest level in two decades.