Nasdaq Hits Record High as Oil Drops 10% in Five Sessions
Nasdaq Composite set a new intraday record at 27,250.92. Brent crude fell 1% to $98.92 amid reports of potential Strait of Hormuz reopening.
Key points
- Nasdaq Composite hit a record 27,250.92 as tech stocks drove gains.
- Brent crude fell 1% to $98.92 after Iran offered to reopen the Strait of Hormuz.
- US-China talks described as successful boosted investor confidence in AI sectors.
The Nasdaq Composite reached a new intraday high of 27,250.92 on Tuesday. This gain occurred as Brent crude futures dropped 1% to $98.92 per barrel.
US West Texas Intermediate crude fell 2% to $93.50 during the session. The decline marks the fifth consecutive session of lower oil prices.
Iran offers to reopen key waterway
Kyodo News reported that Iran proposed reopening the Strait of Hormuz within seven days. This offer was reportedly conveyed to Washington through mediators on September 16.
Saudi Arabia may restart its East-West pipeline as early as this week. These moves reduce supply risks that previously supported higher energy prices.
Technology stocks lead broad market rally
The S&P 500 gained 0.1% while the Dow Jones rose 185 points. These gains followed a strong Monday session led by artificial intelligence titles.
Meta Platforms surged 11% on Monday while Intel climbed 12%. Advanced Micro Devices reached a $1 trillion market capitalisation briefly.
Diplomatic talks boost market sentiment
Treasury Secretary Scott Bessent described US-China preliminary talks as very successful. These discussions raised hopes for greater cooperation on artificial intelligence.
The 10-year US Treasury yield fell more than four basis points to 4.951%. Lower oil prices help ease inflation pressures despite elevated government debt concerns.
