Nasdaq Hits Record High as Oil Yields Retreat
Global stocks rallied Monday as Brent crude dropped 3.4% and the 10-year Treasury yield eased below 5%.
Key points
- Nasdaq hit a record high of 27,122.09 while Brent crude fell 3.4% to $100.34 per barrel.
- The 10-year Treasury yield dropped to 4.95%, easing below the 5% barrier crossed earlier in the week.
- U.S. President Xi Jinping is confirmed to visit Washington for talks on trade and AI safety.
The Nasdaq composite rose 2.3% to an all-time high of 27,122.09 on Monday. This gain followed a 3.4% drop in Brent crude oil prices, which eased pressure on global markets. The S&P 500 climbed 1.5% to close at 7,764.70, sitting just 0.4% below its previous record.
The Dow Jones Industrial Average added 366.19 points to reach 52,048.83. Investors responded to lower energy costs and a slight decline in bond yields. These factors reduced the immediate financial strain on equity valuations across major indices.
Oil prices retreat from weekly highs
Brent crude settled at $100.34 per barrel after falling from nearly $110 last week. The price remains significantly above the $72 level seen earlier this summer. Supply disruptions in the Strait of Hormuz continue to limit available crude volumes.
Average gasoline prices in the United States reached $4.48 per gallon. This figure is up from $4.32 a week prior and $3.18 a year ago. Morgan Stanley analysts identify rising fuel costs as a key risk to equity targets.
Bond yields ease below critical threshold
The 10-year Treasury yield dropped to 4.95% from 5.01% late Friday. It had crossed the 5% mark earlier in the week for the first time since 2023. Lower yields reduce borrowing costs for governments, businesses, and households.
Rising yields are driven by inflation concerns and heavy government debt loads. These factors increase the cost of servicing national debts. The recent dip in yields provided some relief to equity markets.
Geopolitical talks boost market optimism
U.S. Treasury Secretary Scott Bessent described recent talks with China as successful. President Xi Jinping is scheduled to visit the United States from September 23 to 25. Trade, tariffs, and artificial intelligence safety are expected to be central agenda items.
Advanced Micro Devices stock surged 9.9% to reach a $1 trillion market value. Nvidia shares rose 2.3% as demand for computing power remains strong. The Mercury News reported that these gains helped drive the broader tech sector rally.
