U.S. stock indexes advanced significantly, with the tech-heavy Nasdaq Composite reaching a new record high of 27,122.09, a gain of 2.26% or 599.55 points. The S&P 500 increased by 1.49% to 7,764.70, and the Dow Jones Industrial Average rose 0.71% to 52,048.83. This market rally was largely fueled by renewed investor confidence in the artificial intelligence sector, as fears about "extinction risk" subsided. Chipmakers, seen as major beneficiaries of data-center development, performed exceptionally well. Advanced Micro Devices (AMD) surged 9.9% to $615.52, exceeding a $1 trillion market capitalization for the first time, while Intel jumped 12.1% and Nvidia added 2.3%.
A significant factor contributing to the market's positive performance was the decline in oil prices. Brent crude futures fell 3.4% to $100.34 a barrel, and West Texas Intermediate (WTI) crude futures slumped 4.5% to $95.78 a barrel. This drop was attributed to President Donald Trump signaling openness to meeting Iranian officials at the United Nations General Assembly, which raised hopes for a potential breakthrough in Middle East talks and improved oil supply stability. Despite the recent decline, the average retail price of diesel reached a record high of $6.51 a gallon in the U.S., and regular gasoline climbed to nearly $4.48 a gallon.
Treasury yields, which had been near multiyear peaks due to inflation concerns, saw a retreat. The yield on the 10-year Treasury note declined 0.033 percentage point to 4.962%, moving 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, and the 30-year bond yield fell 0.031 percentage point to 5.296%. This easing of bond yields helped alleviate pressure on equities.
Other notable corporate news included Warner Bros. Discovery shares rising 11% to $30.80 on reports that Paramount reached an antitrust settlement deal with 12 state attorneys general. This settlement potentially clears the way for an $81 billion acquisition that would unite the two Hollywood studios. Meta Platforms (META) also saw a significant jump of 11.4% after Wells Fargo hiked its price target on the stock, following the initial success of Meta's AI agent Muse. Anthropic, an AI firm, is planning its multibillion-dollar initial public offering in November, later than many investors anticipated, reflecting a recent call for a slowdown in AI development.
