Nasdaq Hits Record High as Oil Drops Below $100
US equities surged on Monday as crude prices fell and Treasury yields eased, setting the stage for Xi's Washington visit.
Key points
- Nasdaq Composite rose 2.3% to a record high, while the S&P 500 climbed 1.5%.
- WTI crude oil fell 4.5% to $95.78, easing inflation pressures on the market.
- Xi Jinping is set to meet Trump in Washington, with a state dinner planned for Thursday.
The Nasdaq Composite jumped 2.3% to close at a record high. This marked its first peak since June, driven by a sharp rise in chipmakers.
West Texas Intermediate crude futures dropped 4.5% to $95.78 a barrel. The decline reduced inflation concerns that had weighed on markets for weeks.
Oil and yields ease market fears
Brent crude touched a session low of $98.98 before settling at $100.34. Traders stripped out the war premium as geopolitical risks appeared manageable.
Treasury yields retreated from a two-decade high. Investors pared bets on further Federal Reserve tightening after last month's rate hike.
Bitcoin pushed above $86,000, reaching a high of $86,349.90. This level is the highest since late January, though it remains below the 2025 peak.
Xi arrives for second meeting
Chinese leader Xi Jinping is expected to arrive at Joint Base Andrews on Wednesday. He will meet President Trump for the second time this year.
A state dinner is scheduled for Thursday at the White House. Analysts expect the leaders to extend the trade truce reached in South Korea.
AI regulation debate intensifies
US Treasury Secretary Scott Bessent said the administration will not provide a federal liability shield for AI developers. He stated that humans remain responsible for model outcomes.
OpenAI proposed a global framework to govern recursive self-improvement capabilities. The company argues that alignment research must keep pace with advancing models.
