Wall Street rallies as AI optimism reignites, Treasury yields retreat
Investors point to signs that AI spending is still expanding, despite recent safety warnings from AI leaders that triggered a global tech selloff.
New York markets experienced a sharp rally on Monday, propelled by strong performance in AI-related stocks and a retreat in Treasury yields. The S&P 500 and Nasdaq ended the day higher, with the S&P 500 gaining 1.49% and the Nasdaq Composite rising 2.26%. Advanced Micro Devices hit a market capitalization of US$1 trillion for the first time, while chip stocks like Intel and Arm Holdings surged. Meta shares soared after Wells Fargo raised its price target following the launch of its Muse AI assistant.
The benchmark US 10-year yield fell below the 5% level, while Brent crude prices tumbled below US$100 a barrel, settling at US$100.34 per barrel. This shift in market sentiment, influenced by potential breakthroughs in Middle East talks and speculation about a trade truce between the US and China, led to a more positive outlook for investors.
Despite concerns over the US Federal Reserve's interest-rate outlook and the upcoming US Federal Reserve meetings, the market's optimism around AI and potential geopolitical developments drove the rally.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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