S&P 500 Rises 1.5% as Oil and Bond Yields Retreat
Global equities rallied Monday as Brent crude dropped below $101 and 10-year Treasury yields eased, relieving pressure on growth stocks.
Key points
- The S&P 500 rose 1.5% to 7,764.70, approaching its all-time record after a week of volatility.
- Brent crude oil prices dropped 3.4% to $100.34, while the 10-year Treasury yield fell to 4.95%.
- Advanced Micro Devices stock surged 9.9% to reach a $1 trillion market valuation, leading tech gains.
The S&P 500 gained 1.5% on Monday, closing within 0.4% of its all-time record. This surge followed a sharp retreat in energy prices and government bond yields.
Brent crude fell 3.4% to $100.34 per barrel, down from nearly $110 last week. The 10-year Treasury yield eased to 4.95%, pulling back from the 5.01% peak seen Friday.
Energy costs ease market pressure
Lower oil prices reduced inflation fears that had driven bond yields higher last week. The 10-year yield crossed above 5% for the first time since 2023 before falling back.
Average U.S. gasoline prices reached $4.48 per gallon, up from $3.18 a year ago. Morgan Stanley warns that further spikes in fuel costs remain the primary risk to equity gains.
Tech and crypto sectors lead gains
Advanced Micro Devices rallied 9.9%, pushing its market value past $1 trillion. Nvidia added 2.3% as the Nasdaq composite hit a new all-time high of 27,122.09.
Bitcoin rose above $86,000, returning to levels last seen in January. Coinbase Global climbed 3.5% and Robinhood Markets gained 2.9% as digital asset sentiment improved.
Diplomatic talks support broader market optimism
U.S. Treasury Secretary Scott Bessent described recent talks with Chinese officials as successful. This diplomatic progress helped ease investor concerns about global trade stability.
China’s President Xi Jinping will visit the United States between September 23 and 25. Analysts from ING noted that profit-taking in oil and geopolitical hopes boosted Monday’s rally.
