AMD Hits $1T as Tech Stocks Surge on Easing Geopolitical Tensions

Technology stocks led a broad market rally on Monday, with the Nasdaq Composite rising 2.2% to a new all-time closing high. The Nasdaq 100 recorded its strongest single-day performance since early August, driven by significant gains in semiconductor and software sectors. The S&P 500 climbed 1.5%, marking its best day in over a month, while the Dow Jones Industrial Average added more than 360 points.

The surge was fueled by easing geopolitical tensions and falling energy costs. Reports indicated that President Donald Trump might meet with Iranian President Pezeshkian at the United Nations General Assembly, raising hopes for renewed oil traffic through the Strait of Hormuz. Consequently, Brent crude oil dropped 3.4% to $100.34 per barrel, and the 10-year Treasury yield fell to 4.96%, reducing pressure on consumer borrowing rates.

Semiconductor Giants Drive Index Gains

Advanced Micro Devices (AMD) shares rose nearly 10%, allowing the company to achieve a $1 trillion market valuation for the first time. This milestone was part of a broader rally in chipmakers, with ARM Holdings spiking 17% and Intel gaining 12%. These companies accounted for some of the best-performing stocks on the Nasdaq, reflecting investor confidence in the hardware sector's trajectory.

Meta Platforms also contributed significantly to the index performance, with shares climbing 11.4%. This marked the company's best one-day stock performance since the market turmoil in April 2025. The gain was attributed to optimism surrounding its artificial intelligence ambitions and the recent release of its Muse AI assistant. Other non-tech sectors also participated, with Moderna shares rising 12% and industrial and real estate sectors posting strong gains.

Energy Sector Lags Amid Price Drops

The energy sector was the S&P 500's largest underperformer on Monday, declining 2.5% as oil prices continued their downward trend. Brent crude closed at $100.34, down 3.4%, while U.S. crude slid to $95.78, a 4.5% drop. This represented the fourth consecutive day of declines, bringing the total drop since Wednesday to 9.5%. The sector's weakness reflected evaporating profit expectations as supply concerns eased.

Bloomberg News reported an increase in Saudi Arabia's oil flows, citing satellite imagery of supertankers filling up, which further pressured prices. Despite the recent drop, oil prices remain elevated, having risen more than 65% since the start of the year. The decline in energy costs provided relief to investors who had been concerned about inflationary forces rippling through the U.S. economy.

Trade Talks Offer Limited Relief

U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent described trade discussions with China as very successful on Sunday night. The delegations discussed artificial intelligence and potentially lower tariffs on various goods. However, Greer dismissed speculation about extending the current U.S.-China trade deal, stating that no extension was expected immediately. This limited the upside potential for risk assets, keeping the rally primarily driven by tech and energy dynamics.

According to NBC News, the market's positive reaction was largely attributable to the prospect of diplomatic progress with Iran and falling oil prices. The combination of lower energy costs and stable bond yields created a favorable environment for growth stocks. Investors appeared to prioritize technological innovation and corporate earnings over broader macroeconomic risks, leading to the strong performance in the Nasdaq and S&P 500 indices.