Stocks lagged on Monday as rising oil prices continued to pressure Wall Streets. The Dow Jones Industrial Average sunk nearly 400 points, while the S&P 500 Index and Nasdaq Composite lost about 1% and 1.2%, respectively.

Here's how the market settled on Monday:

S&P 500 Index (SPY  ): -0.96% or -55.13 points to 5,695.94

Dow Jones Industrial Average (DIA  ): -0.94% or -398.51 points to 41,954.24

Nasdaq Composite Index (QQQ  ): -1.18% or -213.95 points to 17,923.90

In the News:

Generac Holdings (GNRC  ) shares rose higher on Monday as Hurricane Milton intensified into a Category 5 storm, expected to reach landfall in Florida by Wednesday, boosted sentiment surrounding the power generation company. Meanwhile, insurance companies including Universal Insurance (UVE  ), Allstate (ALL  ) and Travelers (TRV  ) dipped lower as the storm brings more damage to the Gulf Coast region in the wake of Hurricane Helene.

U.S. Judge James Donato in California issued a permanent injunction on Monday to force Google (GOOG  ) (GOOGL  ) to offer alternatives to its Google Play store for downloading apps on Android devices. The ruling also restricts Google, starting in November, from paying fees or sharing revenue with companies in exchange for them agreeing to not compete with its app store.

The decision is related to Epic Games' antitrust lawsuit against the tech giant, and could lead to developers to keep more revenue from app store sales on both Google and Apple's (AAPL  ) platforms.

Super Micro Computer (SMCI  ) shares jumped Monday after the computer server company announced its shipping more than 100,000 graphics processing units used for artificial intelligence computing per quarter. The company also said it recently deployed over 100,000 GPUs with liquid cooling solution -- which would allow data centers to spend less on hardware and infrastructure -- "for some of the largest AI factories ever built."

Zoom Out:

Goldman Sachs Chief Economist Jan Hatzius cut the firm's 12-month U.S. recession risk back to his long-term average of 15%, as the labor market remains strong after a brief increase of unemployment from June to July.

"The most important reason is that the unemployment rate fell to 4.051% in September, marginally below both the June level and the threshold that activates the 'Sahm rule.' Moreover, with nonfarm payroll growth of 254K surprising sharply to the upside, prior months revised higher, and household employment also solid, we now estimate an underlying jobs trend of 196K, well above our pre-payrolls estimate of 140K and modestly above our estimate 'breakeven rate' of 150-180K," Hatzius wrote.

Citi Strategists are expecting global earnings per share growth of more than 10% in 2024 and more than 13% in 2025, with growth being strongest in the United States as well as emerging markets, benefitting from easing inflation.

"Global equities typically fare well around rate cuts. Global equities are higher on average 12 [months] after the start of easing cycles," the firm said in a late Friday note. "Typically, upside is driven by multiple re-ratings, while earnings decline. This time, we expect multiples to remain steady, with upside driven by earnings growth."

For Tuesday:

Market participants are gearing up for the start of the third-quarter earnings season, with Pepsico (PEP  ) set to report on Tuesday, while Delta Air Lines (DAL  ), BlackRock (BLK  ), JPMorgan Chase (JPM  ) and Wells Fargo (WFC  ) slated for later in the week.