U.S. stocks rally broadens as lower oil and yields lift non-tech sectors

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US stocks rally expands

Highlights

Brent crude drops 7.63% to $104.77 a barrel and the 10-year Treasury yield hits its lowest since Sept. 10, boosting non-tech stocks.
Amazon rises 2% and Waste Management gains 1.8% as lower yields prompt investors to reassess companies previously overlooked due to higher rates.
Healthcare stocks like Medtronic (+3%), GE HealthCare (+4%), Intuitive Surgical (+1%), and financials such as Capital One (+3%) lead gains as retail giants Walmart and Costco add 3% each.

Oil and rate moves reshape market leadership

As reported by CNBC, Jim Cramer says a sharp drop in Brent crude and a decline in the 10-year Treasury yield are improving the backdrop for a broader stock market rally. Brent crude tumbles 7.63% on Monday to close at $104.77 a barrel, while the 10-year yield falls to its lowest level since Sept. 10, helping lift sectors outside technology.

Cramer says the change in rates is pushing investors back toward companies whose quarterly results were initially overlooked. He points to Amazon, which rises 2% on Monday, arguing that investors are reassessing the company after its quarterly report from last week as lower yields make growth shares look more attractive again.

He also highlights Waste Management, up 1.8%, saying the company is finally getting credit for strong quarterly results that had been overshadowed by higher rates. Even so, he warns that the scale of the one-day moves may be difficult to sustain as money rushes into stocks at the same time.

Healthcare, financials and retailers gain traction

Cramer says investors are continuing to move money out of technology without leaving the broader market, opening the door for other industries to act as new growth proxies. Medical device makers are among the beneficiaries, with Medtronic up 3%, GE HealthCare rising 4% and Intuitive Surgical climbing 1%.

Financial stocks also advance as lower gasoline prices ease some concerns about consumers' ability to repay debt. Capital One jumps 3% after struggling the previous week amid worries over fuel costs and credit delinquencies.

Consumer companies join the rally as well, with Walmart and Costco each gaining roughly 3%. Cramer says lower rates and cheaper gasoline leave shoppers with more money to spend in stores, reinforcing the market's shift toward non-tech sectors.

In our earlier report on the S&P 500’s push toward 8,000, we noted that the rally’s durability was being tested by high oil prices and elevated 10-year Treasury yields, even as third-quarter earnings expectations remained strong. The piece also flagged concentration risk in AI-linked megacaps and weakening market breadth, alongside signs of rotation toward areas like healthcare as investors reassessed risk heading into key political uncertainty.

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