S&P 500 Gains 1.5% as Oil Prices Drop $3.40 per Barrel
The S&P 500 rose 1.5% to 7,764.70 as Brent crude fell to $100.34, easing pressure from rising bond yields and supporting tech stocks.
Key points
- S&P 500 gained 1.5% to 7,764.70, coming within 0.4% of its all-time high.
- Brent crude oil prices fell 3.4% to $100.34, down from nearly $110 last week.
- Advanced Micro Devices stock rose 9.9% as its market value reached $1 trillion.
The S&P 500 index rose 1.5 percent to close at 7,764.70 on Monday. This gain placed the benchmark just 0.4 percent below its all-time record set last month.
The rally followed a 3.4 percent drop in Brent crude oil prices to $100.34. This decline relieved immediate pressure on equity valuations after a volatile previous week.
Oil Prices Ease Inflation Fears
Brent crude retreated from nearly $110 last week to $100.34 on Monday. Los Angeles Daily News notes this pullback helped calm market nerves regarding energy costs.
Average US gasoline prices stand at $4.48 per gallon. This figure remains significantly higher than the $3.18 recorded one year ago.
The 10-year Treasury yield eased to 4.95 percent from 5.01 percent. It had previously crossed the 5 percent threshold for the first time since 2023.
Tech and AI Sectors Lead Gains
The Nasdaq composite jumped 2.3 percent to a new all-time high of 27,122.09. Advanced Micro Devices stock surged 9.9 percent, pushing its market value to $1 trillion.
Nvidia shares added 2.3 percent as demand for chips remains strong. Analysts expect continued hardware needs even if industry development slows for safety reasons.
Diplomatic Talks Boost Market Optimism
US Treasury Secretary Scott Bessent described recent talks with Chinese officials as successful. President Xi Jinping is scheduled to visit the United States from September 23 to 25.
Investors view these diplomatic moves as positive for global trade stability. This sentiment contributed to the broader worldwide equity rally observed on Monday.
