U.S. stocks advanced significantly on Monday, driven by a relief rally stemming from a substantial drop in oil futures. This positive market sentiment was primarily fueled by President Donald Trump's indication of openness to meeting Iranian officials at the United Nations General Assembly, which eased concerns about ongoing Middle East tensions. The Dow Jones Industrial Average rose 366.19 points, or 0.71%, to 52048.83, while the S&P 500 gained 114.20 points, or 1.49%, to 7764.70. The tech-heavy Nasdaq Composite saw the most notable increase, adding 599.55 points, or 2.26%, to reach a record high of 27122.09, its first record close since June 2.
Oil futures experienced a sharp decline, falling $4.52, or 4.5%, to $95.78 a barrel. This decrease was attributed to the prospect of diplomatic engagement between the U.S. and Iran, with J.D. Joyce, president of Joyce Wealth Management, noting that "any positive indication is well received by the market," despite the situation remaining fluid. This downturn in crude prices also contributed to a decrease in Treasury yields, with the 10-year Treasury note declining 0.033 percentage point to 4.962%. Conversely, the retail price of diesel reached a record average of $6.51 a gallon, prompting congressional leaders to propose a ban on U.S. exports of the fuel.
The technology sector, particularly AI-related stocks, saw a strong resurgence as fears about "extinction risk" subsided. Chipmakers were standout performers, with Advanced Micro Devices (AMD) rising 9.9% to $615.52, surpassing a market capitalization of $1 trillion for the first time. Intel also saw a significant gain, rising 13%, while Meta Platforms climbed 6.7% after Wells Fargo upgraded its price target, citing strong performance of its Muse AI agent. Accenture gained 6% following its partnership with Anthropic, involving a $2 billion investment in AI evaluation.
In other corporate news, shares of Warner Bros Discovery rose 11% to $30.80, marking its largest gain in nearly a year. This surge came after reports of Paramount reaching an antitrust settlement deal with 12 state attorneys general, clearing the path for an $81 billion acquisition that would merge two prominent Hollywood studios. The settlement terms are expected to allow Paramount to retain control of cable channels and commit to investment in domestic studios and production. The Trump administration also proposed a $5 billion fund to aid Middle Eastern countries in rebuilding energy infrastructure, aiming to reduce their reliance on the Strait of Hormuz for oil and gas transport.
