Nasdaq Hits Record High as Oil Falls to $100.34
Global equities surged Monday as Brent crude dropped 3.4% and 10-year Treasury yields eased below 5 percent.
Key points
- Nasdaq hit a record high of 27,122.09 as Brent crude fell 3.4% to $100.34 per barrel.
- AMD stock rose 9.9% to reach a $1 trillion market cap, leading the tech sector's gains.
- 10-year Treasury yields dropped to 4.95% after breaching the 5% mark for the first time since 2023.
The Nasdaq composite reached a new all-time high on Monday, gaining 2.3% to 27,122.09. This rally followed a 3.4% drop in Brent crude prices, which fell to $100.34 per barrel. The S&P 500 also climbed 1.5%, positioning it just 0.4% below its previous record set last month.
According to the Lowell Sun, the retreat in energy costs reduced pressure on bond markets. The yield on the 10-year U.S. Treasury note eased to 4.95%, down from 5.01% on Friday. This decline followed the yield crossing the 5% threshold for the first time since 2023.
Energy Costs Ease Inflation Fears
Brent crude prices remain significantly higher than the roughly $72 levels seen earlier this summer. However, the recent drop from nearly $110 provides relief for consumers and businesses alike. The average price of a gallon of regular gasoline in the United States stands at nearly $4.48.
This price point is up from less than $4.32 a week ago and $3.18 a year ago. Morgan Stanley strategist Michael Wilson identifies rising oil and gasoline prices as the primary near-term risk to his market forecast. He notes that strong corporate profit growth continues to support equity valuations despite these costs.
Tech and Crypto Sectors Lead Gains
Advanced Micro Devices stock rallied 9.9%, pushing its total market value to $1 trillion. Nvidia shares added 2.3% as demand for artificial intelligence hardware remains robust. These gains helped drive the broader Nasdaq composite to its new peak performance level.
Cryptocurrency-linked stocks also benefited from Bitcoin rising above $86,000, a level last seen in January. Coinbase Global shares climbed 3.5%, while Robinhood Markets rose 2.9%. Warner Bros. Discovery jumped 10.8% after settling lawsuits with 12 states and Hollywood writers regarding its Paramount buyout.
Diplomatic Talks Boost Market Optimism
Investors also responded positively to diplomatic developments between the United States and China. U.S. Treasury Secretary Scott Bessent described Sunday’s talks with Chinese Vice Premier He Lifeng as very successful. China’s Foreign Ministry confirmed that President Xi Jinping will visit the United States from September 23 to 25.
Experts expect trade, tariffs, and AI safety to dominate the agenda during this state visit. ING commodities strategists noted that hopes for these discussions helped improve market optimism. This sentiment, combined with profit-taking in oil, contributed to the broad global equity rally on Monday.
