Nasdaq Jumps 2% to 27,054 as Chipmakers Rally on Falling Yields
US stocks climbed Monday as semiconductor shares surged and energy costs dropped, driving the Nasdaq to a fresh high.
Key points
- Nasdaq Composite rose 2% to 27,054.7, with AMD trading above $1 trillion intraday.
- 10-year Treasury yield dropped 4.3 basis points to 4.95%, retreating from a 2007 high.
- WTI crude oil fell 5.4% to $94.89, while Brent crude declined 4.5% to $99.18.
The Nasdaq Composite jumped 2% to close at 27,054.7, marking a sharp daily gain. This move was driven by a strong performance from major technology companies.
The S&P 500 rose 1.4% to 7,754.6, while the Dow Jones gained 0.6% to 52,014.8. These gains reflected broader market optimism during Monday trading.
Semiconductor Shares Drive Market Strength
Arm, Intel, and AMD led the top gainers among large-cap stocks. Advanced Micro Devices briefly traded above the $1 trillion market value threshold.
Communication services also posted strong gains, supporting the broader index movement. Energy stocks lagged, forming part of the few declining sectors that day.
Bond Yields and Oil Prices Drop
The 10-year Treasury yield fell 4.3 basis points to 4.95%. This decline pulled the rate back from its highest point since 2007.
West Texas Intermediate crude oil slumped 5.4% to $94.89 per barrel. Brent crude dropped 4.5% to $99.18, easing pressure on cost-sensitive sectors.
Market Sentiment Improves on Lower Rates
Yahoo Finance reports that sliding government yields helped boost equity valuations. Lower borrowing costs typically support growth-oriented technology stocks.
Investors welcomed the decline in oil prices, which reduces input costs. This combination of lower rates and cheaper energy supported the day's rally.
