U.S. stocks saw a significant rise on Monday, primarily driven by a surge in technology and AI-related companies, as oil futures tumbled. The Dow Jones Industrial Average increased by 366.19 points, or 0.71%, closing at 52048.83. The S&P 500 gained 114.20 points, or 1.49%, to 7764.70, while the tech-heavy Nasdaq Composite hit a record high, adding 599.55 points, or 2.26%, to reach 27122.09. This marks the Nasdaq's first record close since June 2. The rally was fueled by renewed investor confidence in the AI boom, after fears about "extinction risk" in AI development subsided. Chip makers, seen as major beneficiaries of data-center expansion, performed strongly.
Key individual stock movements included Advanced Micro Devices (AMD) rising 9.9% to $615.52, pushing its market capitalization over $1 trillion for the first time. Intel also saw a 13% increase, and Micron gained 2.3%. Meta soared 6.7% to a seven-month high after Wells Fargo raised its price target on the stock, citing the strong start of its Muse AI agent. Accenture gained 3.2% following its partnership with Anthropic, involving a $2 billion investment in AI evaluation. Warner Bros Discovery shares surged 11% to $30.80, marking its biggest gain in nearly a year, after Paramount reached an antitrust settlement allowing for an $81 billion acquisition.
Oil futures declined significantly, with West Texas Intermediate (WTI) falling $4.52, or 4.5%, to $95.78 a barrel, reaching an 11-day low. Brent crude futures also dropped 3.4% to $100.34 a barrel. This downturn was attributed to hopes of resumed U.S.-Iran negotiations, as President Trump expressed openness to meeting Iranian officials at the United Nations General Assembly in New York. The prospect of diplomatic progress eased concerns about Middle East oil supply, despite ongoing attacks on Saudi Arabian infrastructure by Houthi fighters. Lower oil prices benefited sectors sensitive to energy costs, such as airlines.
Treasury yields also retreated, with the yield on the 10-year Treasury note declining 0.033 percentage point to 4.962%, slipping below the critical 5% mark. The two-year Treasury yield rose slightly by 0.009 percentage point to 4.751%, its highest close since July 1, 2024, while the 30-year bond yield fell 0.031 percentage point to 5.296%. Despite the positive market movements, some caution remained regarding the interest-rate outlook, as the Chicago Fed President Austan Goolsbee indicated a need for higher interest rates due to persistent inflation, and markets showed a 50% chance of another rate hike next month.
