Nasdaq hits record high, AI optimism lifts stocks, Treasury yields retreat
The Nasdaq Composite Index closed at a record high on Monday, buoyed by advancements in AI technology and a rally in chip stocks, including AMD which reached a $1 trillion valuation. Treasury yields fell from recent peaks, and oil prices dropped, influenced by speculation of Middle East diplomatic progress.
71% By Noel Randewich and Johann M Cherian Sept 21 (Reuters) — The Nasdaq surged to a record-high close on Monday, lifted by gains in Advanced Micro Devices and other AI heavyweights, while Treasury yields retreated from recent highs and crude prices tumbled to an 11-day low on speculation about a potential breakthrough in Middle East talks at a UN meeting this week. 2% and Arm Holdings up 17%. 3%. Advanced Micro Devices rose about 10% to reach a market capitalization of $1 trillion for the first time.
4% below its August 13 record-high close. Investors pointed to signs that suggest spending on AI is still expanding, despite recent safety warnings from leaders of AI giants a week ago that triggered a global tech selloff. 34 per barrel. While Washington and Tehran exchanged threats through the weekend, US President Donald Trump said he would be open to meeting Iranian President Masoud Pezeshkian, who is expected to attend the UN General Assembly in New York this week.
"We've been kind of programmed to follow the price of oil and the yield on the US 10-year, and if you look at those two things today, they've shifted from being headwinds to tailwinds for this market, at least in the near term," said Art Hogan, chief market strategist at B. Riley Wealth. 4% after Wells Fargo hiked its price target on the social media platform following the recent launch of its Muse AI assistant. 70 points.
83 points. The S&P 500 last Friday traded at just under 19 times expected earnings, its lowest valuation since 2023, AI-related heavyweights are responsible for much of the recent increase in earnings expectations. Investors remained wary of the interest-rate outlook after the US Federal Reserve last week raised rates for the first time in three years to fight inflation. Traders see a 50% chance of another hike next month, CME's FedWatch showed.
Commentary from at least 10 central bank policymakers is due this week. US-listed shares of companies exposed to Greenland rose following progress in diplomatic negotiations between the United States and Denmark about the status of Greenland. Greenland Mines tripled in value, while Greenland Energy more than doubled. A Chinese-US summit on Thursday could cover topics including potentially extending the trade truce between the two superpowers, the Iran war and regulation of AI.
A report said the US proposed to extend the trade truce by six months, while China sought a longer extension. Bitcoin, a key marker of risk tolerance, rose over 6% to a more than seven-month high, lifting Coinbase and Strategy. Paramount Skydance fell almost 3% after a source told Reuters the company had reached a settlement with California and 11 other states suing to block its $110 billion merger with Warner Bros Discovery. 4% gain in information technology.
4-to-one ratio. The S&P 500 posted seven new highs and 29 new lows; the Nasdaq recorded 64 new highs and 127 new lows. 2 billion shares over the previous 20 sessions. com)