S&P 500 Rises 1.5% as Oil Prices Retreat to $100.34
Global equities rallied Monday as Brent crude dropped 3.4% and 10-year Treasury yields eased below the 5% threshold.
Key points
- The S&P 500 rose 1.5% to 7,764.70, approaching its all-time record by 0.4%.
- Brent crude oil prices fell 3.4% to $100.34, down from nearly $110 last week.
- The 10-year Treasury yield dropped to 4.95% after previously exceeding the 5% mark.
The S&P 500 gained 1.5% on Monday to reach 7,764.70 points. This move placed the index within 0.4% of its all-time record high.
The rally followed a 3.4% drop in Brent crude prices to $100.34 per barrel. Bond yields also eased, relieving pressure on equity valuations.
Energy costs ease from recent peaks
Brent oil prices fell from nearly $110 last week to $100.34 on Monday. This decline reduced the immediate inflationary threat to corporate profit margins.
Average U.S. gasoline prices stand at $4.48 per gallon according to AAA. That figure is up from $4.32 a week earlier but remains elevated compared to $3.18 a year ago.
Treasury yields retreat below five percent
The yield on the 10-year Treasury note eased to 4.95% from 5.01%. This marks a reversal after the rate crossed the 5% threshold earlier in the week.
High borrowing costs previously increased expenses for the U.S. government and businesses. The recent decline offers some relief for debt servicing and investment plans.
AI and crypto sectors lead gains
Advanced Micro Devices shares surged 9.9%, pushing its market value to $1 trillion. Nvidia stock also rose 2.3%, continuing the sector’s recovery from last week’s slide.
Bitcoin climbed above $86,000, driving a 3.5% jump in Coinbase Global stock. Robinhood Markets added 2.9% as digital asset sentiment improved. Newsday reported that these moves helped lift the broader market.
