S&P 500 Closes at Record High as Oil Prices Retreat
US equities hit new peaks on Monday as Brent crude dropped 3.4% and 10-year Treasury yields eased below the 5% mark.
Key points
- The S&P 500 closed at a record high of 7,764.70, gaining 1.5% on Monday trading.
- Brent crude oil prices fell 3.4% to $100.34, easing pressure on global equity markets.
- Advanced Micro Devices stock rose 9.9%, reaching a market capitalization of $1 trillion.
The S&P 500 rose 114.20 points to close at 7,764.70, setting a new all-time high. This gain placed the index within 0.4% of its previous record established last month.
Global stocks rallied as Brent crude oil prices fell 3.4% to $100.34 per barrel. Simultaneously, the yield on the 10-year US Treasury note eased to 4.95% from 5.01% late Friday.
Energy prices ease market pressure
Oil prices had surged nearly to $110 last week due to supply concerns in the Middle East. The recent drop reflects profit-taking and optimism about potential diplomatic discussions between the US and China.
Average gasoline prices in the US reached $4.48 per gallon, up from $4.32 a week earlier. Analysts note that further spikes in energy costs remain the primary risk to equity valuations.
Tech and AI sectors lead gains
The Nasdaq composite jumped 2.3% to reach its own all-time high of 27,122.09. Advanced Micro Devices stock rallied 9.9%, pushing its market value to the $1 trillion mark.
Nvidia shares added 2.3% as demand for chips powering artificial intelligence remains strong. Crypto-related stocks also rose, with Coinbase Global climbing 3.5% after bitcoin surpassed $86,000.
Bond yields reflect inflation concerns
The 10-year Treasury yield had crossed above 5% for the first time since 2023. Higher yields increase borrowing costs for governments, households, and businesses worldwide.
US Treasury Secretary Scott Bessent described recent talks with Chinese officials as successful. President Xi Jinping is scheduled to visit the US from Sept. 23 to 25, per reports from yakimaherald.com.
