Tech shares rally as Nasdaq hits best day since August, oil and bond yields fall

U.S. equity markets surged on Monday, with the Nasdaq 100 posting its strongest gain since early August. The broader Nasdaq Composite rose 2.2% to a record closing level, the S&P 500 advanced 1.5%, and the Dow added more than 360 points, or 0.7%.

Semiconductor firms led the gains; ARM Holdings jumped 17% and Intel climbed 12%, while AMD shares rose nearly 10% after the company reached a $1 trillion market valuation. Meta Platforms gained 11.4%, adding roughly $200 billion in market value, driven by optimism around its AI projects and the recently launched Muse AI assistant. Shares of Moderna rose 12%, and industrial, real-estate and consumer-discretionary stocks also posted solid gains.

Paramount Skydance and Warner Bros. Discovery each rose over 10% after reaching a merger agreement with state attorneys general, which is expected to clear regulatory hurdles.

The market move followed a weekend report that President Donald Trump indicated a possible openness to meeting Iran’s president, raising hopes of renewed oil traffic through the Strait of Hormuz. Brent crude fell 3.4% to $100.34 a barrel and U.S. crude dropped 4.5% to $95.78, marking oil’s fourth consecutive day of decline. Bloomberg cited satellite images showing increased Saudi oil flows, contributing to the price drop.

Energy stocks lagged, with the S&P energy index down 2.5% as lower oil prices reduced profit expectations. At the same time, Treasury yields eased; the 10-year note fell to 4.96% after reaching 5.02% the previous week, while the average 30-year mortgage rate remained at 7.19%.

U.S. Treasury Secretary Scott Bessent and trade representative Jamieson Greer described recent trade talks with China as “very successful,” noting discussions on AI and tariff reductions. Greer later told Bloomberg that an extension of the U.S.–China trade deal set to expire in November was not expected today.