Wall Street closed sharply higher on Monday, powered by falling Treasury yields and easing inflation fears driven by a steep decline in crude oil prices.
The major indexes opened solidly in the green and sustained their gains throughout the session, ultimately finishing at their highs of the day.
The Dow Jones Industrial Average climbed 366.19 points, or 0.71 percent, to settle at 52,048.83 at the close of trading.
The NASDAQ soared 599.55 points, or 2.26 percent, to close at a record high of 27,122.09, marking a significant milestone for the tech-heavy index.
The S&P 500 also posted strong gains, rising 114.20 points, or 1.49 percent, to end the session at 7,764.70.
The NASDAQ led the broader rally as renewed optimism surrounding large AI hyperscalers lifted sentiment across the technology sector significantly.
Advanced Micro Devices (AMD), Seagate, Intel (INTC), Western Digital, and Marvell all posted standout gains, contributing heavily to the index’s record-breaking performance.
Energy stocks faced considerable headwinds as West Texas Intermediate crude oil futures for October dropped to $95.70 a barrel, losing more than 4.5 percent on the session.
The sharp decline in oil prices came amid hopes that ongoing diplomatic efforts between the U.S. and Iran could help de-escalate tensions across the Middle East region.
Adding further support to equities, the yield on the 10-year U.S. Treasury bond dropped below the 5 percent mark as inflation concerns continued to ease among investors.
Gold prices snapped a three-day winning streak on Monday, with a stronger U.S. dollar and profit taking weighing on the precious metal during the session.
The dollar index climbed to 100.42, rising nearly 0.2 percent, amid market expectations for additional interest rate hikes from the Federal Reserve going forward.
Asian markets moved mostly higher on Monday, with China’s Shanghai Composite Index rising 0.97 percent, South Korea’s KOSPI jumping 1.65 percent, and Taiwan’s TSE rallying 1.14 percent.
Japan’s Nikkei 225 was absent from trading, with the market closed for a public holiday during the Monday session.
European markets also closed notably higher, rebounding strongly from the previous session’s losses, with the FTSE in London rising 79.88 points, or 0.75 percent, to 10,739.01.
Germany’s DAX jumped 270.95 points, or 1.07 percent, to 25,575.01, while France’s CAC 40 gained 73.92 points, or 0.92 percent, to close at 8,138.94.
