Nasdaq Rises 1.8% as Brent Crude Falls to $100.30
Oil prices retreated from recent highs, triggering a broad rally in US stocks and a record market cap for AMD.
Key points
- Brent crude fell 3.4% to $100.30, helping the Nasdaq Composite rise 1.8% and the S&P 500 gain 1.2%.
- AMD’s market cap crossed $1 trillion as the stock rose 9.1%, following a three-day streak of top downloads for Meta’s AI agent.
- The 10-year Treasury yield dropped to 4.96% as lower oil prices reduced inflation concerns and eased pressure on bond markets.
Brent crude dropped 3.4% to $100.30, reversing gains that had pushed prices near $110 earlier in the week. This decline removed inflationary pressure from the broader market, allowing equity indices to recover lost ground from the previous session.
The Nasdaq Composite climbed 1.8% to lead the rally, while the S&P 500 rose 1.2%. The Dow Jones Industrial Average gained 0.5% as investors responded to easing energy costs and stronger performance in technology sectors.
Chip makers lead the recovery
Meta Platforms jumped 8.6% after its Muse AI agent topped free iPhone downloads for three days. This success drove demand expectations for semiconductor hardware, prompting a sharp increase in chip-related trading activity.
Advanced Micro Devices rose 9.1% and Intel gained 14% on the same day. AMD’s market capitalization crossed the $1 trillion mark for the first time, surpassing Intel’s all-time peak of $707 billion.
Bond yields ease on lower oil
The 10-year Treasury yield slid more than 3 basis points to 4.96%. Falling crude prices reduced the perceived need for aggressive interest rate hikes, providing a supportive environment for risk assets.
Geopolitical risks remain the key variable
Chinese President Xi Jinping visits the United States from September 23 to 25 to discuss tariffs and AI. Treasury Secretary Scott Bessent described preliminary talks as successful, with both sides discussing tariff cuts on $30 billion of goods.
Regular gasoline averages nearly $4.48 a gallon, up from $4.32 a week ago and $3.18 last year. The Fed expects at least one more rate hike before the end of 2026, though higher oil could accelerate this timeline.
