Wall Street In Rally Mode As AI Stocks Stabilize

Stocks are higher to start the final week of October, as cooling oil prices lift investor sentiment. The Dow Jones Industrial Average (DJI) is 248 points higher at last look, the blue-chip index heading for its fourth in in the last five sessions. The Nasdaq Composite (IXIC) and S&P 500 Index (SPX) are also confidently in the black, the tech-heavy former up 318 points as Anthropic IPO buzz restores some AI enthusiasm.

Elsewhere, the small-cap Russell 2000 (RUT) is testing 28,000 today, while Wall Street's "fear gauge," the Cboe Volatility Index (VIX) moves back below 19. Ahead of the Federal Reserve's two-day policy meeting that starts tomorrow, CME's FedWatch shows a 90.6% rates will remain steady.

Delta Air Lines Inc (NYSE: DAL) stock is one of the most active names in the options pits today. At last look, over 66,000 options have changed hands, volume that's double the average intraday amount. The December 87.50 call leads the way, while the 95 call in the same series is also popular. Delta stock is up 3% to trade at $79.01, as the airliner consolidates below $80. Year to date, DAL is 13.2% higher.

Lumentum Holdings (Nasdaq: LITE) stock is up 4.1% to trade at $787.61 today. StoneX initiated coverage on the photonics name with a "buy" rating and $1,200 price target, record-high levels. Lumentum stock is up 123% on the year, and is trying to reclaim its 200-day moving average today after last week's test.

Nu Holdings (NYSE: NU) is near the bottom of the New York Stock Exchange (NYSE) today, down 20.4% to trade at $12.07. The Brazilian-based fintech is selling off after Lula won a surprise reelection over Flávio Bolsonaro, despite the former winning the first round. The round $12 level is stepping up as support, the same area that held a June pullback. NU is now down 28% in 2026.