Wall St surges on AI optimism as oil falls

Wall Street experienced a surge on Monday, propelled by optimism surrounding artificial intelligence (AI) and falling oil prices. Advanced Micro Devices (AMD) and other AI-focused companies led the market higher, while Treasury yields retreated from recent highs. Crude oil prices dropped to an 11-day low due to speculation of progress in Middle East negotiations at a United Nations meeting.

Chip stocks, including Intel and Arm Holdings, also saw significant gains. AMD's market capitalization reached a new high of US$1 trillion. The Nasdaq reached a record-high close since June 2, and the S&P 500 closed near its August 13 record. Investors noted ongoing AI spending expansion, despite recent safety warnings from AI leaders that sparked a global tech sell-off.

The 10-year US Treasury yield fell below 5%, and Brent crude futures fell below $100 per barrel. US President Donald Trump expressed openness to meeting Iranian President Masoud Pezeshkian, who is set to attend the UN General Assembly in New York. Meta's stock surged 11.4% after Wells Fargo raised its price target following the launch of its AI assistant, Muse.

The S&P 500 gained 1.5% to 7,764 points, while the Dow Jones Industrial Average increased 0.7% to 52,048 points. Investors remain cautious about the Federal Reserve's interest rate outlook, with a 50% chance of another rate hike next month according to CME's FedWatch. Central bank policymakers are expected to provide commentary this week.

Shares of companies involved in Greenland experienced growth following diplomatic progress between the US and Denmark regarding Greenland's status. Greenland Mines tripled, and Greenland Energy more than doubled in value. Bitcoin's price rose over 6% to a seven-month high, boosting Coinbase and Strategy. Paramount Skydance saw a 3% drop following a Reuters report of a settlement with California and 11 other states over its proposed $110 billion merger with Warner Bros Discovery.