US stock markets advanced significantly today, with the Nasdaq Composite closing at a record high of 27122.09, a gain of 2.26%. The S&P 500 rose 1.49% to 7764.70, and the Dow Jones Industrial Average increased 0.71% to 52048.83. This rally was largely fueled by a resurgence in investor confidence in the AI sector after recent concerns about "extinction risk" subsided. Chipmakers, seen as major beneficiaries of data center expansion, performed particularly well. Advanced Micro Devices (AMD) surged 9.9% to $615.52, pushing its market capitalization above $1 trillion for the first time.
Oil prices experienced a notable decline, with futures falling $4.52, or 4.5%, to $95.78 a barrel. This drop was attributed to President Donald Trump's indication of willingness to meet Iranian officials at the United Nations General Assembly, which eased geopolitical tensions despite ongoing attacks on Saudi Arabian infrastructure by Houthi fighters. The decrease in oil prices also contributed to an easing of inflationary concerns and pressure on Treasury yields. However, the retail price of diesel reached a record average of $6.51 per gallon in the US, prompting congressional proposals for a ban on US fuel exports.
Treasury yields, which had been near multi-year highs due to inflation concerns, saw some retreat. The 10-year Treasury note's yield declined 0.033 percentage points to 4.962%, and the 30-year bond yield fell 0.031 percentage points to 5.296%. Conversely, the two-year Treasury yield edged up 0.009 percentage points to 4.751%, its highest close since July 1, 2024. In corporate news, Warner Bros Discovery shares jumped 11% to $30.80 following reports of an antitrust settlement for Paramount's acquisition, potentially clearing the way for an $81 billion merger that would unite two major Hollywood studios. Separately, Anthropic's planned multibillion-dollar IPO was delayed to November, later than many investors anticipated.
