Wall Street rises as AI stocks shine, oil drops; Dow, S&P, Nasdaq up

On Monday, Wall Street's major indexes experienced a rise as AI stocks outperformed and oil prices fell by over 3%, hitting an 11-day low. This optimism was driven by the hope of progress in Middle East negotiations during the UN meeting. The recent doomsday warnings from AI giants had led to a stock market sell-off, but investors appeared more optimistic, focusing on expanding spending on AI development.

Chip companies such as Intel rose 9%, while Advanced Micro Devices surged 8.5%, becoming the latest chipmaker to reach a $1 trillion market valuation. Meta soared 6.2% to a seven-month high after well-known brokerage Wells Fargo raised its price target, and Accenture gained 3.5% after partnering with Anthropic to invest $2 billion in AI evaluation.

Chris Zaccarelli, chief investment officer for Northlight Asset Management, noted the excitement in AI adoption, leading to corporate profits and stock market gains. The US President, Donald Trump, expressed willingness to meet Iranian President Masoud Pezeshkian, who is expected at the UN General Assembly in New York. Oil prices fell, easing pressure on equities, while the 10-year US bond yield slipped below the 5% mark.

However, investors remained cautious about the interest-rate outlook, with a 50% chance of another Fed rate hike next month. The Dow Jones Industrial Average rose 0.47%, the S&P 500 gained 0.92%, and the Nasdaq Composite added 1.48%, marking the first day since the pandemic began that all three major indexes rose.