Nasdaq Hits Record High as Oil Prices Retreat from Peak
Global equity markets rallied on Monday after Brent crude prices dropped by 3.4 percent and US Treasury yields eased slightly.
Key points
- The Nasdaq composite reached an all-time high of 27,122.09 points on Monday.
- Brent crude oil prices fell 3.4 percent to 100.34 dollars per barrel.
- US ten-year Treasury yields dropped to 4.95 percent from 5.01 percent.
The Nasdaq composite index rose 2.3 percent to reach a new all-time high on Monday. This gain pushed the broader S&P 500 index within 0.4 percent of its previous record level.
Investors responded to a 3.4 percent drop in Brent crude oil prices that reduced pressure on the bond market. The yield on the ten-year US Treasury note fell to 4.95 percent from 5.01 percent.
Commodity prices influence market sentiment
Brent crude oil settled at 100.34 dollars per barrel after touching nearly 110 dollars last week. This decline provided relief to stocks that had been dragged down by rising energy costs.
The average price for a gallon of regular gasoline in the United States stands at 4.48 dollars. This figure is significantly higher than the 3.18 dollars recorded one year ago.
Morgan Stanley analysts identify continued high energy prices as the primary risk to their year-end market target. Rising costs for gasoline and refined products could constrain corporate earnings and consumer spending.
Diplomatic talks reduce geopolitical risk
US Treasury Secretary Scott Bessent described Sunday talks with Chinese Vice Premier He Lifeng as very successful. This engagement helped ease investor anxiety regarding trade tariffs and international stability.
China confirmed that President Xi Jinping will visit the United States between September 23 and 25. Topics for discussion are expected to include trade agreements and artificial intelligence safety regulations.
Technology and media sectors lead gains
Advanced Micro Devices shares surged 9.9 percent to push its market value above one trillion dollars. This move followed a broader recovery in artificial intelligence stocks after last week's decline.
Warner Bros. Discovery stock jumped 10.8 percent after legal challenges to its buyout by Paramount were settled. The resolution of lawsuits in twelve states removed a significant uncertainty for the media company.
