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.

Chip stocks rallied, with Intel surging 12.2 percent and Arm Holdings up 17 percent. Advanced Micro Devices rose about 10 percent to reach a market capitalisation of US$1 trillion for the first time.

The Nasdaq notched its first record-high close since June 2, while the S&P 500 ended about 0.4 percent 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.

The benchmark US 10-year yield fell below the psychologically important 5-percent level as Brent crude futures dipped below US$100 a barrel to their lowest level since September 9, later settling at US$100.34 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.

Meta shares soared 11.4 percent after Wells Fargo hiked its price target on the social media platform following the recent launch of its Muse AI assistant.

The S&P 500 climbed 1.5 percent to end the session at 7,764 points. The Nasdaq gained 2.3 percent to 27,122 points, while the Dow Jones Industrial Average rose 0.7 percent to 52,048 points.

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 percent 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.

Bitcoin, a key marker of risk tolerance, rose over 6 percent to a more than seven-month high, lifting Coinbase and Strategy.

Paramount Skydance fell almost 3 percent after a source told Reuters the company had reached a settlement with California and 11 other states suing to block its US$110 billion merger with Warner Bros Discovery. (Reuters)



Edited by Cecil Wong