Nasdaq Records a New Record Close as AI Optimism Revives

Nasdaq jumped to a new record close on Monday, buoyed by gains in Advanced Micro Devices (AMD) and other major AI‑linked stocks, while Treasury yields fell from recent highs and crude oil prices slipped to an 11‑day low amid speculation that Middle‑East talks could see a breakthrough at this week’s United Nations meeting. By the close, the S&P 500 was up 1.49% (about 114 points) at 7,764.70, the Nasdaq rose 2.26% (600 points) to 27,122.09, and the Dow Jones Industrial Average gained 0.71% (366 points) to 52,048.83. The Nasdaq posted its first all‑time high since June 2, and the S&P 500 finished about 0.4% shy of its record close set on August 13. On Friday, the S&P 500 traded at just under 19 times forward earnings, its lowest multiple since 2023, according to LSEG data. Large AI‑related stocks accounted for a sizable share of the recent earnings‑estimate upgrades. Semiconductor stocks rallied, with Intel up 12.2% and Arm Holdings up 17%. The Philadelphia Semiconductor Index (PHLX) jumped 4.3%. AMD surged roughly 10%, pushing its market capitalization past the $1 trillion mark for the first time. Investors noted that AI spending continues to expand despite safety warnings issued by top AI‑company leaders a week earlier, which had sparked a global sell‑off in tech shares. Falling bond yields and oil prices supported equities: the 10‑year U.S. Treasury yield slipped below the psychologically important 5% level, while Brent futures fell below $100 per barrel, their lowest since September 9, before stabilising around $100.34. Amid a weekend of exchanged threats between Washington and Tehran, U.S. President Donald Trump said he would be open to meeting Iranian President Masoud Beshkian, who is expected to attend the UN General Assembly in New York this week. Meta Platforms stock jumped 11.4% after Wells Fargo raised its price target following the recent launch of the company’s AI assistant, Muse. Investors remain cautious on rate expectations after the Federal Reserve raised interest rates last week for the first time in three years in its fight against inflation. Traders see a 50% probability of another rate hike next month, according to CME’s FedWatch tool. At least ten central‑bank officials are slated to speak this week. U.S.-listed stocks with exposure to Greenland rallied, and Bitcoin surged more than 6% after diplomatic talks made progress.