U.S. stocks rallied Monday as renewed enthusiasm for artificial intelligence lifted technology shares while falling oil prices and a retreat in Treasury yields eased pressure on investors.

By yourNEWS Media Newsroom.

Wall Street posted broad gains Monday as investors returned to artificial intelligence stocks, crude oil retreated toward $100 a barrel and the benchmark 10-year Treasury yield fell below a closely watched threshold.

The technology-heavy Nasdaq Composite led the advance, gaining 599.55 points, or 2.26%, to finish at 27,122.09, according to preliminary closing data. The S&P 500 rose 113.72 points, or 1.49%, to 7,764.22, while the Dow Jones Industrial Average added 371.24 points, or 0.72%, to close at 52,053.88.

The rally reversed some of the anxiety that had surrounded technology shares following warnings from leaders of major artificial intelligence companies a week earlier that contributed to a global tech selloff.

Monday’s trading instead reflected continued investor confidence that spending on AI infrastructure remains substantial, sending semiconductor and other technology shares higher.

Advanced Micro Devices was among the day’s biggest beneficiaries, reaching a $1 trillion market capitalization for the first time. AMD shares jumped 9.6% to a record $613.31 as investors increasingly viewed the company as a major participant in the expansion of AI computing infrastructure. The stock has risen about 185% during 2026, according to Reuters.

The milestone placed AMD among a small group of chip companies to achieve a trillion-dollar valuation.

The company has been expanding beyond individual processors toward larger AI computing systems as it seeks a greater share of a market dominated by Nvidia. AMD has also been gaining ground in server processors, an area where Intel historically held a large share.

Intel and Arm Holdings also surged Monday as semiconductor stocks broadly benefited from the return of AI buying.

Meta Platforms was another major technology winner.

Shares of the Facebook and Instagram parent climbed after Wells Fargo increased its price target following Meta’s recent introduction of its Muse artificial intelligence assistant, adding to optimism that major technology companies can continue generating returns from AI investments.

Investors were also encouraged by moves outside the technology sector.

The yield on the benchmark 10-year U.S. Treasury note dropped below 5%, reversing some of the increase that had recently pressured equity valuations and increased borrowing costs.

At the same time, oil prices fell sharply as traders assessed the possibility of diplomatic progress involving the conflict with Iran during this week’s United Nations General Assembly in New York.

Brent crude briefly traded below $100 a barrel, reaching its lowest level since Sept. 9, before settling at $100.34. The November Brent contract fell $3.53, or 3.4%, Monday. U.S. West Texas Intermediate’s expiring October contract dropped $4.52, or 4.5%, to $95.78.

Expectations of improved Saudi oil shipments also contributed to the decline. Saudi Arabia has increased exports from Gulf terminals after damage to its east-west pipeline disrupted part of its supply system, with tanker data showing a significant recovery in crude moving through the Strait of Hormuz.

Lower energy prices and falling Treasury yields provided markets with relief from two of the pressures that had recently weighed on stocks.

“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.

Middle East diplomacy contributed to the change in sentiment.

President Donald Trump said he would be willing to meet Iranian President Masoud Pezeshkian, who is expected in New York for the U.N. General Assembly, despite Washington and Tehran exchanging threats during the weekend. Investors interpreted the possibility of talks as a potential opening for efforts to reduce tensions that have disrupted energy markets and international shipping.

The decline in oil prices is particularly significant for markets because elevated energy costs can feed into inflation, potentially increasing pressure on the Federal Reserve to maintain higher interest rates.

That issue remains one of Wall Street’s largest uncertainties.

The Federal Reserve last week raised its benchmark interest rate for the first time in three years, increasing its target range by a quarter percentage point to 3.75%-4% as policymakers sought to address persistent inflation. Sixteen of 18 Fed policymakers projected at least one additional increase during 2026.

Futures traders on Monday placed roughly a 50% probability on another rate increase at the Fed’s next meeting, according to CME’s FedWatch tool.

Markets will receive additional guidance throughout the week as at least 10 Federal Reserve policymakers are scheduled to speak.

That combination of interest-rate uncertainty and rapidly changing energy prices has made bond yields and crude oil particularly influential for equities.

The S&P 500 entered Monday at a substantially lower valuation than it carried earlier in the year. On Friday, the index traded at just under 19 times expected earnings, its lowest forward earnings multiple since 2023, according to LSEG data.

AI-related companies have accounted for a significant portion of the recent increase in projected corporate earnings, helping explain why renewed confidence in technology spending translated into a strong move in the broader index.

Monday’s risk-on sentiment extended into cryptocurrency markets.

Bitcoin climbed to its highest level in more than seven months, providing a boost to crypto-related stocks including Coinbase and Strategy. Bitcoin is frequently watched by traders as an indicator of speculative risk appetite because of its volatility and sensitivity to changing financial conditions.

Another unusual group of stocks rallied following developments involving Greenland.

U.S.-listed shares of companies with exposure to the Arctic territory jumped after the United States, Denmark and Greenland reached an agreement expanding U.S. security access while preserving Danish sovereignty over the island.

Greenland Mines tripled in value during Monday trading, while Greenland Energy more than doubled.

The agreement expands U.S. military access and includes provisions intended to restrict military installations and certain sensitive investments by non-NATO countries. Danish and Greenlandic officials have said the agreement does not transfer sovereignty to the United States.

Investors are also preparing for another potentially market-moving diplomatic event later in the week.

Chinese President Xi Jinping is scheduled to meet Trump in Washington on Thursday during Xi’s Sept. 23-25 state visit to the United States. Trade, artificial intelligence and geopolitical disputes are among the subjects expected to be discussed.

The two countries are operating under a trade truce that is scheduled to expire Nov. 10.

U.S. and Chinese officials held preparatory meetings in New York ahead of the summit and agreed to establish a continuing dialogue over AI safety. Treasury Secretary Scott Bessent said Monday that no extension of the trade truce had yet been finalized.

Reuters reported that the United States has proposed a six-month extension while China has sought a longer arrangement. The Trump-Xi meeting could also address the Iran conflict and broader regulation of artificial intelligence.

Not every stock participated in Monday’s rally.

Paramount Skydance declined following news that it had reached a settlement with California and 11 other states that sued to block the company’s $110 billion acquisition of Warner Bros. Discovery.

The agreement removes one of the final major legal barriers to the transaction while placing conditions on the combined company involving film production, competition and independent editorial oversight of CNN and CBS.

Despite that decline, Monday’s broader market direction was decisively higher.

The session brought together several factors investors had been waiting for: renewed buying in AI companies, lower Treasury yields, falling crude prices and signs that diplomatic talks could reduce some geopolitical risks.

Those developments do not eliminate the uncertainties confronting Wall Street. The Federal Reserve has resumed raising interest rates, oil remains near historically elevated levels, conflicts involving Iran continue, and investors are still debating whether enormous spending on artificial intelligence will ultimately generate returns sufficient to justify technology-sector valuations.

For Monday, however, the combination of lower yields and energy prices allowed AI optimism to return to the forefront.

AMD’s move into the trillion-dollar market-capitalization club served as the clearest symbol of that shift, while the Nasdaq’s 2.26% jump showed how rapidly investors moved back toward technology and other risk-sensitive assets after the previous week’s volatility.

Original article