AMD Hits $1 Trillion as S&P 500 Rises 1.6% on AI Gains

Advanced Micro Devices reached a $1 trillion market cap on Monday, leading a sharp rally in U.S. equities. The S&P 500 index climbed 1.6 percent, erasing most of last week's losses for investors.

The Nasdaq Composite gained 2.2 percent to post its first record close since June. The Dow Jones Industrial Average added 421 points, or 0.8 percent, as tech strength offset broader sector weakness.

AI stocks drive the broader rally

Intel shares surged 11 percent, while Qualcomm rose 8 percent in a broad tech lift. These gains helped the Nasdaq outperform other major indices significantly during the trading session.

Market participants focused on semiconductor leaders as the primary engine for Monday's price action. This recovery followed a week where the Dow posted its worst performance since March.

Oil prices slide despite geopolitical tensions

U.S. crude oil dropped 4 percent to settle above $95 per barrel on Monday. Brent crude fell 3 percent to remain just over the $100 threshold, easing inflation concerns.

These price moves occurred despite renewed hostilities in the Middle East over the weekend. Iran-backed Houthis attacked Saudi Arabia, and the U.S. warned citizens to reconsider travel to the region.

Bond yields fall as Fed watches energy

The 10-year Treasury yield declined more than 2 basis points to 4.972 percent on Monday. The 30-year yield also slipped to 5.305 percent, reflecting lower inflation expectations.

The Federal Reserve hiked rates last week for the first time in three years. Analysts noted that persistent energy shocks could force further tightening, complicating the monetary policy path.

CNBC reported that diplomatic efforts between the U.S. and Iran may continue this week. President Trump indicated he might meet Iranian officials during the United Nations General Assembly.