AI stocks lift Wall St as oil falls, Treasury yields decline
Wall Street’s main indexes rose on Monday, powered by AI gains as Treasury yields eased and crude prices tumbled more than 3% to hit an 11-day low on hope of progress in Middle East negotiations during the UN meeting this week. Doomsday warnings from the leaders of AI giants a week ago had led to a selloff, but the mood seemed lighter as investors focused on signs that spending on developing the…
Wall Street experienced a surge on Monday, driven by advancements in artificial intelligence (AI) and a decline in oil prices, while Treasury yields retreated. The optimism surrounding AI development, despite initial doomsday warnings from industry leaders, contributed to a positive sentiment among investors. Chipmakers like Intel, Advanced Micro Devices, and Micron Technology saw significant gains, with some reaching new market valuation milestones.
Social media giant Meta also performed well, reaching a seven-month high after a price target increase from Wells Fargo. Accenture gained after teaming up with Anthropic to invest in AI evaluation. Despite ongoing tensions between the US and Iran, US President Donald Trump expressed openness to meeting Iranian President Masoud Pezeshkian at the UN General Assembly.
The fall in oil prices helped ease the pressure on equities, and the 10-year US bond yield fell below the 5% threshold. However, investors remained cautious about future interest rate hikes, with a 50% chance of another increase in the following month according to CME's FedWatch. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all posted gains, with seven of the 11 S&P 500 sectors trading higher.
The optimism extended to Greenland-related companies, with some shares surging. Bitcoin also saw a rise, reflecting a positive risk appetite, while several companies announced settlements or merger-related developments.
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