Nasdaq Hits Record High as Oil Falls and Yields Ease
The Nasdaq composite reached an all-time high Monday, driven by a 3.4% drop in Brent crude and lower 10-year Treasury yields.
Key points
- The Nasdaq composite reached an all-time high of 27,122.09 on Monday, rising 2.3%.
- Brent crude oil prices fell 3.4% to $100.34, down from last week's near-$110 peak.
- The 10-year U.S. Treasury yield dropped to 4.95%, easing below the 5% threshold.
The Nasdaq composite hit a new all-time high on Monday as global equity markets rallied. This surge followed a significant retreat in oil prices and U.S. bond yields from their previous week's peaks.
The S&P 500 climbed 1.5%, moving within 0.4% of its record high. The Dow Jones Industrial Average gained 366 points, or 0.7%, while the Nasdaq jumped 2.3% to close at 27,122.09.
Oil prices drop below one hundred dollars
Brent crude oil fell 3.4% to settle at $100.34 per barrel. This price remains well above the $72 level from earlier this summer but down from last week's near-$110 peak.
Analysts at ING attribute the decline to profit-taking and improved geopolitical optimism. They cited potential diplomatic talks at the U.N. General Assembly and between Chinese and U.S. leaders.
Treasury yields ease below the five percent mark
The yield on the 10-year U.S. Treasury note eased to 4.95% from 5.01%. This marks a retreat after the yield crossed the 5% threshold for the first time since 2023.
Higher yields increase borrowing costs for governments, households, and businesses. The recent drop in yields reduced pressure on equities that are sensitive to interest rate changes.
AI and crypto stocks lead the rally
Advanced Micro Devices stock surged 9.9%, pushing its market value to $1 trillion. Nvidia shares added 2.3% as investors returned to the artificial intelligence sector after last week's slide.
Cryptocurrency-related stocks also rallied as Bitcoin rose above $86,000. Coinbase Global climbed 3.5% and Robinhood Markets gained 2.9% during the session.
