U.S. stocks started the week on a strong note, with the Nasdaq Composite jumping 2.26% to close at a record 27,122.09, as investors returned to technology and artificial intelligence stocks. The rally came as oil prices and Treasury yields eased, helping Wall Street recover from a largely weaker performance the previous week. The S&P 500 also climbed 1.49% to 7,764.70, while the Dow Jones Industrial Average gained 366.19 points, or 0.71%, to settle at 52,048.83.
AI-related stocks were among the biggest drivers of Monday’s rally. Intel shares surged 12%, while Advanced Micro Devices (AMD) rose about 10%, pushing the chipmaker’s market capitalisation above the $1 trillion mark. Qualcomm also gained more than 9%, highlighting renewed investor appetite for technology companies tied to the rapidly expanding artificial intelligence sector.
The broader market also received support from a sharp pullback in oil prices. U.S. crude fell 4.5% to $95.78 per barrel, while Brent crude dropped 3.4% to $100.34. The decline came despite renewed tensions in the Middle East, following attacks and escalating threats involving the U.S., Iran and other regional actors. Investors are also watching closely for possible diplomatic developments, with U.S. President Donald Trump indicating he could be open to meeting Iranian President Masoud Pezeshkian during the UN General Assembly.
Lower oil prices were accompanied by falling U.S. Treasury yields, offering additional relief to investors concerned about inflation and borrowing costs. The 10-year Treasury yield fell by more than four basis points to 4.951%, while the 30-year yield declined to 5.284%. The moves are particularly significant as markets assess the Federal Reserve’s approach to inflation after the central bank raised interest rates last week for the first time in three years.
Despite Monday’s gains, concerns over energy prices, inflation and geopolitical tensions remain firmly on investors’ radar. Analysts have warned that prolonged disruptions to global energy supplies could create renewed inflationary pressure and influence future monetary policy. Attention is also turning to a key meeting between Trump and Chinese President Xi Jinping, where artificial intelligence, tariffs and critical minerals are expected to feature prominently, adding another major catalyst for global markets this week.
source: cnbc