US stocks ended sharply higher on Monday as technology shares rallied, while falling oil prices and Treasury yields eased pressure on equities.
The Dow Jones Industrial Average gained 366.19 points, or 0.71%, to 52,048.83, while the S&P 500 climbed 1.49% to 7,764.75. The Nasdaq Composite advanced 2.26% to a record close of 27,122.09.
AI stocks lead Wall Street higher
AI-related stocks led the broader market higher, with several major chipmakers posting strong gains.
Intel shares jumped 12%, while Advanced Micro Devices gained nearly 10% and reached a $1 trillion market capitalisation for the first time. Qualcomm shares also rose 9%, while Arm Holdings advanced.
The gains came as investors continued to assess the outlook for AI spending following a recent technology sell-off.
The S&P 500 had ended the previous week about 0.1% lower, while the Nasdaq gained 0.7%. The Dow fell 1.7% last week, marking its worst weekly performance since March.
Meta shares also advanced after Wells Fargo raised its price target on the company following the recent launch of its Muse AI assistant.
Bitcoin also rose to a more than seven-month high, supporting shares of crypto-linked companies including Coinbase and Strategy.
Oil and Treasury yields fall
Oil prices declined sharply on Monday, helping ease some of the pressure on markets from elevated energy costs and inflation concerns.
US crude fell 4.5% to $95.78 a barrel, while Brent crude dropped 3.4% to $100.34. Brent briefly fell below $100 a barrel for the first time since September 9.
The decline came amid hopes for diplomatic progress between the US and Iran during this week’s United Nations General Assembly.
President Donald Trump said he would be open to meeting Iranian President Masoud Pezeshkian, who is expected to attend the gathering.
The decline in oil prices was accompanied by lower Treasury yields.
The 10-year Treasury yield fell more than four basis points to 4.949%, while the 30-year yield declined to 5.282%.
Markets remained focused on the Federal Reserve’s interest-rate outlook after the central bank raised rates last week for the first time in three years.
Traders were pricing in about a 50% chance of another rate hike next month, according to CME FedWatch.
Markets watch US-China summit and Middle East
Despite Monday’s rally, investors continued to monitor geopolitical and monetary policy risks.
The US and Iran exchanged threats over the weekend following attacks by Iran-backed Houthis on Saudi Arabia. The US State Department also warned Americans to reconsider travel to the Middle East.
Meanwhile, President Trump and Chinese President Xi Jinping are expected to meet on Thursday.
Discussions could cover trade, the Iran war, artificial intelligence and critical minerals.
The US has reportedly proposed extending the current trade truce by six months, while China has sought a longer extension.
Shares of companies exposed to Greenland also surged following progress in diplomatic negotiations between the US and Denmark.
Greenland Mines tripled in value, while Greenland Energy more than doubled.
Investors will also monitor comments from at least 10 central bank policymakers due this week as markets assess the outlook for inflation and interest rates.
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