Nasdaq Hits Record High as Oil Prices Retreat from Weekly Peak
The Nasdaq composite reached an all-time high on Monday as Brent crude dropped 3.4% and the 10-year Treasury yield eased below 5%.
Key points
- The Nasdaq composite hit an all-time high of 27,122.09, rising 2.3% on Monday.
- Brent crude oil dropped 3.4% to $100.34, easing pressure on the 10-year Treasury yield.
- Advanced Micro Devices reached a $1 trillion market cap, gaining 9.9% in a single session.
The Nasdaq composite surged 2.3% to 27,122.09, marking a new all-time high for the index. This gain followed a broad rally across global stock markets on Monday. The S&P 500 also climbed 1.5%, closing at 7,764.70 and staying within 0.4% of its record. The Dow Jones Industrial Average added 366.19 points to reach 52,048.83. These moves reversed some of the volatility seen in previous trading sessions.
Brent crude oil prices fell 3.4% to $100.34 per barrel, easing pressure on investors. This decline came after prices approached $110 earlier in the week. The drop helped lower the 10-year U.S. Treasury yield to 4.95% from 5.01% late Friday. This yield had crossed the 5% threshold for the first time since 2023. Lower yields reduce borrowing costs for governments and businesses, supporting economic activity.
Energy costs ease despite geopolitical risks
The average price for a gallon of regular gasoline in the U.S. stands at $4.48. This figure is up from $4.32 a week earlier and significantly higher than $3.18 a year ago. Morgan Stanley's Michael Wilson identifies rising oil and gasoline prices as the main near-term risk to his market forecast. He notes that strong corporate profits currently support stock valuations despite these energy headwinds.
ING strategists Ewa Manthey and Warren Patterson attribute the recent oil price pullback to profit-taking. They also cite optimism surrounding potential diplomatic breakthroughs. Investors are watching the U.N. General Assembly and upcoming talks between U.S. and Chinese leaders. Treasury Secretary Scott Bessent described recent discussions with Chinese Vice Premier He Lifeng as successful. These diplomatic efforts aim to stabilize trade and energy supply chains.
Diplomatic talks and tech sector strength
China’s Foreign Ministry confirmed that President Xi Jinping will visit the United States from September 23 to 25. Trade, tariffs, and AI safety are expected to dominate the agenda. This visit follows a period of heightened tensions between the two economies. Positive diplomatic signals have contributed to the broader risk-on sentiment in global markets this week.
Advanced Micro Devices rallied 9.9% to reach a $1 trillion market valuation. Nvidia added 2.3% to its total, continuing a recovery in semiconductor stocks. These gains reflect sustained demand for chips used in artificial intelligence infrastructure. Despite industry warnings about development speed for safety reasons, analysts expect robust demand for computing power to persist.
Crypto and media stocks see mixed results
Bitcoin rose above $86,000, returning to levels last seen in January. This move lifted Coinbase Global by 3.5% and Robinhood Markets by 2.9%. In the media sector, Warner Bros. Discovery jumped 10.8% after settling lawsuits over its Paramount buyout. Conversely, Paramount Skydance fell 2.9% following the same legal resolution. These sector-specific moves highlight divergent reactions to regulatory and legal developments.
