Nasdaq Hits Record High as Oil Drops to $100.34
Global stocks surged Monday as Brent crude fell 3.4% and 10-year Treasury yields eased below the 5% threshold.
Key points
- The Nasdaq composite hit a record high as Brent crude oil fell 3.4% to $100.34.
- The 10-year Treasury yield dropped to 4.95% after breaching 5% the previous week.
- Advanced Micro Devices gained 9.9% to reach a market capitalization of $1 trillion.
The Nasdaq composite rose 2.3% to reach a new all-time high on Monday. This gain occurred as Brent crude oil prices dropped 3.4% to $100.34 per barrel. The decline in energy costs reduced inflationary pressure across the global market.
The S&P 500 index climbed 1.5% to finish within 0.4% of its record level. The Dow Jones Industrial Average added 366.19 points to close at 52,048.83. These moves reversed the sharp sell-off seen during the previous trading week.
Energy prices ease market pressure
Brent crude prices retreated from nearly $110 last week to $100.34 on Monday. This drop was driven by profit-taking and improved supply expectations through the Strait of Hormuz. Analysts noted that lower oil prices help stabilize broader economic conditions.
The 10-year Treasury yield eased to 4.95% from 5.01% late Friday. This index had crossed the 5% mark for the first time since 2023 last week. Lower yields reduce borrowing costs for households and businesses in the United States.
Technology and crypto sectors lead gains
Advanced Micro Devices stock rallied 9.9% to reach a $1 trillion market value. Nvidia shares added 2.3% as demand for artificial intelligence hardware remains strong. These gains helped drive the broader Nasdaq index to its new peak.
Coinbase Global shares climbed 3.5% after bitcoin prices rose above $86,000. Robinhood Markets also increased by 2.9% during the session. This recovery reflects renewed investor confidence in digital asset markets.
Geopolitical talks support market optimism
U.S. Treasury Secretary Scott Bessent described recent talks with Chinese officials as successful. President Xi Jinping is scheduled to visit the United States between September 23 and 25. Discussions on trade and tariffs are expected to shape future policy.
Warner Bros. Discovery stock jumped 10.8% after settling lawsuits with twelve states and writers. Paramount Skydance shares fell 2.9% in response to the legal resolution. According to AOL.com, these corporate developments contributed to the day's volatility.
