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NEW YORK -- The U.S. stock market rallied to the edge of its all-time high on Monday after easing oil prices helped calm Wall Street's worries that inflation could get even worse.
The S&P 500 jumped 1.5% and is just 0.1% below its record set earlier this summer. It was coming off a frenetic July, where it swung up and down as oil prices shot higher because of the war with Iran, before ultimately ending the month just about where it started.
The Dow Jones Industrial Average, which measures a narrower slice of the U.S. stock market, climbed 693 points, or 1.3%, to an all-time high, while the Nasdaq composite leaped 2.1%.
Stocks got a lift as the price for a barrel of Brent crude sank 4.7% to $83.77. It dropped after President Donald Trump said over the weekend that he decided to hold off on new strikes against Iran at the urging of allies in the region.
Brent's price careened between $72 and $102 last month as worries rose and fell about when the war with Iran would allow oil tankers to freely exit the Persian Gulf again to deliver crude to customers worldwide. The latest acquiescence by Trump helped to ease worries about the global flow of crude, and Treasury yields correspondingly fell in the bond market.
The yield on the 10-year Treasury sank to 4.68% from 4.75% late Friday. It, though, remains well above its 3.97% level from before the war with Iran.
Higher yields threaten to undercut prices for stocks and other investments, while slowing the economy by making borrowing more expensive for U.S. households and businesses. The average long-term U.S. mortgage rate has already leaped to its highest level in a year.