Global Stocks Rally as Oil Falls to $100.34
The S&P 500 rose 1.5% to near record highs as Brent crude dropped 3.4% and ten-year Treasury yields eased below 5%.
Key points
- The S&P 500 rose 1.5% to 7,764.70, approaching its all-time record.
- Brent crude oil fell 3.4% to $100.34, down from last week's near $110 high.
- Ten-year Treasury yields eased to 4.95% after crossing 5% for the first time since 2023.
Global equity markets advanced on Monday as crude oil prices retreated from their recent peak. The S&P 500 index gained 1.5 percent to close at 7,764.70 points. This move placed the benchmark just 0.4 percent below its all-time record.
The Dow Jones Industrial Average added 366.19 points to reach 52,048.83. The Nasdaq composite surged 2.3 percent to set a new high of 27,122.09. Advanced Micro Devices led the tech sector with a 9.9 percent jump.
Oil prices drop sharply
Brent crude declined 3.4 percent to settle at $100.34 per barrel. This price remains well above the roughly $72 level seen earlier this summer. However, it is down from the nearly $110 peak recorded last week.
Average U.S. gasoline prices have risen to nearly $4.48 per gallon. This marks an increase from $4.32 a week ago and $3.18 a year ago. Analysts warn that sustained high fuel costs remain a key risk for equities.
Bond yields ease from peak
The yield on ten-year U.S. Treasuries fell to 4.95 percent from 5.01 percent. It had crossed the 5 percent threshold last week for the first time since 2023. Lower yields reduced borrowing costs for households and businesses.
Investors reacted positively to diplomatic progress between the United States and China. Treasury Secretary Scott Bessent described recent talks with Chinese Vice Premier He Lifeng as successful. Beijing confirmed that President Xi Jinping will visit the U.S. from September 23 to 25.
Sector performance varies widely
Cryptocurrency-related stocks rallied after Bitcoin climbed above $86,000. Coinbase Global shares rose 3.5 percent while Robinhood Markets gained 2.9 percent. Warner Bros. Discovery jumped 10.8 percent after settling lawsuits over its buyout.
Paramount Skydance shares fell 2.9 percent in contrast to the broader rally. The divergence highlights how specific legal resolutions impact individual corporate valuations. Market sentiment improved as geopolitical risks appeared to stabilize.
