Nasdaq Hits Record High as Oil Drops and Yields Ease
US stocks climbed Monday with the Nasdaq reaching an all-time high. Brent crude fell 3.4% to $100.34, reducing pressure from bond yields.
Key points
- The Nasdaq composite reached an all-time high on Monday, gaining 2.3% as the S&P 500 approached its record level.
- Brent crude oil prices fell 3.4% to $100.34, while the 10-year Treasury yield eased to 4.95% from 5.01%.
- Advanced Micro Devices hit a $1 trillion market cap, and Bitcoin prices recovered to above $86,000.
The Nasdaq composite hit a new record high on Monday, rising 2.3%. This gain followed a sharp drop in oil prices and easing bond yields. The S&P 500 climbed 1.5% to within 0.4% of its previous record.
Brent crude oil fell 3.4% to settle at $100.34 per barrel. This decline relieved pressure on the bond market, where the 10-year Treasury yield dropped to 4.95%. The yield had previously crossed the 5% threshold for the first time since 2023.
Oil prices retreat from recent peaks
Crude prices remain well above their summer average of $72. However, the recent spike to nearly $110 has reversed. Analysts attribute the move to profit-taking and hopes for diplomatic progress.
Average gasoline prices in the US reached $4.48 per gallon. In Arkansas, the cost stood at $4.08, according to AAA data. These figures are significantly higher than levels seen a year ago.
Diplomatic talks boost market sentiment
US Treasury Secretary Scott Bessent confirmed successful talks with Chinese officials. China has confirmed President Xi Jinping will visit the US in late September. Trade and AI safety are expected topics for the state visit.
Tech and crypto sectors lead gains
Advanced Micro Devices stock jumped 9.9%, reaching a $1 trillion market value. Nvidia shares added 2.3% as demand for chips remains strong. The AI sector recovered from its earlier weekly slide.
Bitcoin rose above $86,000, returning to levels last seen in January. Coinbase Global shares climbed 3.5% and Robinhood Markets gained 2.9%. Warner Bros. Discovery surged 10.8% after settling state lawsuits.
