Nasdaq Hits Record High as Oil Falls and Bond Yields Ease
Global equities rallied Monday as Brent crude dropped to $100.34 and 10-year Treasury yields retreated below 5.0%.
Key points
- The Nasdaq hit an all-time high as the S&P 500 rose 1.5% to 7,764.70.
- Brent crude oil prices fell 3.4% to $100.34, down from nearly $110 last week.
- The 10-year U.S. Treasury yield dropped to 4.95%, easing below the 5.0% barrier.
The Nasdaq composite surged 2.3% to reach a new all-time high on Monday. This gain followed a sharp decline in oil prices and a drop in long-term bond yields.
Brent crude fell 3.4% to $100.34, easing pressure on inflation expectations. The S&P 500 climbed 1.5%, moving within 0.4% of its previous record.
Oil prices retreat from weekly peaks
Crude prices dropped from near $110 last week due to profit-taking and geopolitical hopes. Investors cited potential diplomatic progress during the upcoming United Nations General Assembly.
U.S. gasoline prices remain elevated at nearly $4.48 per gallon, up from $3.18 a year ago. Morgan Stanley warns that further spikes in fuel costs threaten equity valuations.
Treasury yields ease below five percent
The yield on the 10-year Treasury note eased to 4.95% from 5.01%. This retreat followed the index crossing the 5.0% threshold for the first time since 2023.
High yields increase borrowing costs for governments, households, and businesses. Recent increases were driven by inflation concerns and rising global debt levels.
Tech and crypto stocks lead gains
Advanced Micro Devices shares jumped 9.9%, pushing its market value to $1 trillion. Nvidia added 2.3% as demand for artificial intelligence hardware remains strong.
Bitcoin rose above $86,000, driving Coinbase Global up 3.5%. Warner Bros. Discovery climbed 10.8% after settling lawsuits with state regulators and writers.
