Nasdaq Surges 2% to Record as Tech Stocks Rally on Oil Decline

The Nasdaq Composite surged 2.26% to close at 27,122.09 on Monday, marking its first record close since June. The S&P 500 climbed 1.49% to 7,764.70, posting its best day since August 4. Oil prices collapsed, with U.S. crude dropping 4.5% to $95.78 per barrel, easing inflation pressures and reviving investor appetite for risk assets.

Tech stocks lead the rally

Chipmakers powered the advance. Intel surged 12%, while Advanced Micro Devices rose nearly 10% and hit a $1 trillion market valuation for the first time. Meta Platforms jumped 11.4%, adding nearly $200 billion in market value on optimism around its AI ambitions and newly released Muse AI assistant. Qualcomm gained more than 9%, while Nvidia added 2%.

Oil and bond yields fall sharply

West Texas Intermediate crude futures dropped 4.5% to $95.78 per barrel, while international Brent crude slid 3.4% to $100.34. The 10-year Treasury note yield fell more than 4 basis points to 4.951%. According to Capital.com analyst Daniela Hathorn, oil is the biggest source of relief after a volatile week dominated by inflation concerns.

Geopolitical optimism drives investor sentiment

President Donald Trump signaled openness to meeting with Iranian President Masoud Pezeshkian during this week’s UN General Assembly, raising hopes for renewed diplomacy in the Middle East. Saudi Arabia expects to restore about half of its East-West pipeline capacity within days. Traders’ attention will turn to this week’s summit in Washington between President Donald Trump and Chinese leader Xi Jinping, with artificial intelligence, tariffs, and rare earth metals expected to be key topics.

Broader market strength beyond tech

The Dow Jones Industrial Average added 366 points, or 0.71%, to close at 52,048.83. The S&P 500 industrial, real estate, and consumer discretionary sectors posted strong gains. Moderna shares jumped 12%, while Paramount Skydance and Warner Bros. Discovery each surged more than 10% after reaching a merger deal with state attorneys general.

Final Thoughts

Monday’s rally reflects a shift in market sentiment as oil prices ease inflation fears and geopolitical tensions show signs of thawing. With tech stocks leading and Treasury yields retreating, investors are rotating back into growth assets after weeks of caution.

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