Nasdaq Hits Record High as Oil and Yields Retreat
Global equities rose Monday as Brent crude fell to $100 and 10-year Treasury yields dropped below 5 percent.
Key points
- Nasdaq hit a record high with a 2.3 percent gain on Monday.
- Brent crude oil dropped 3.4 percent to $100.34 per barrel.
- 10-year US Treasury yields fell to 4.95 percent from 5.01 percent.
The Nasdaq composite reached a new all-time high on Monday, gaining 2.3 percent. This rally coincided with a sharp drop in oil prices and easing bond yields.
Brent crude fell 3.4 percent to $100.34 per barrel after touching near $110 last week. The retreat in energy costs reduced inflation fears that had pressured markets.
Bond yields ease after weekly spike
The 10-year Treasury yield fell to 4.95 percent from 5.01 percent late Friday. This move reversed part of last week’s jump above the 5 percent threshold.
Rising yields had increased borrowing costs for governments and businesses. Lower rates now reduce pressure on economic growth and corporate balance sheets.
AI stocks drive broad market gains
Advanced Micro Devices surged 9.9 percent to reach a $1 trillion market value. Nvidia added 2.3 percent, helping pull the entire tech sector higher.
Diplomatic progress also supported sentiment, with China confirming a presidential visit to the US. Investors viewed this as a positive step for trade and AI safety discussions.
Energy costs remain a key risk
US gasoline prices average nearly $4.48 per gallon, up from $3.18 a year ago. Morgan Stanley warns that further spikes in energy costs could limit stock gains.
Durango Herald reports that profit-taking and geopolitical hopes helped stabilize investor confidence. However, supply constraints in the Middle East keep risk premiums elevated.
