Nasdaq closed at a record 27,122.09, up 2.26%, with AMD’s market value cresting the $1 trillion mark for the first time. The rally is powered by a 10% jump for AMD, a 12.2% rise for Intel and a 17% surge for Arm Holdings, which pushed the PHLX semiconductor index 4.3% higher.
S&P 500 finished 1.49% higher at 7,764.70, only 0.4% shy of its August 13 peak, while the Dow added 0.71% to 52,048.83. Trading volume hit 16.5 billion shares, above the 20‑session average of 16.2 billion.
The U.S. 10‑year Treasury yield slipped under the 5% threshold, turning a long‑term headwind into a short‑term tailwind, while Brent crude fell to $100.34, the lowest since September 9. "We’ve seen oil and yields shift from headwinds to tailwinds," said Art Hogan, chief market strategist at B. Riley Wealth.
Fed policy remains a focal point: rates were hiked last week, the first move in three years, and CME’s FedWatch shows a 50% chance of a further hike next month. Ten central‑bank policymakers will speak this week, keeping rate‑expectations in flux.
S&P 500 trades just under 19× expected earnings, its lowest multiple since 2023, driven largely by AI‑heavyweights that are reshaping earnings forecasts. Investors will now eye the upcoming Chinese‑U.S. summit and Fed commentary for hints on the next phase of the tech rally.
Going forward, market participants will monitor Fed minutes and the Chinese‑U.S. dialogue, while analysts tweak price targets for Meta and other AI‑linked names based on the week’s earnings surprises.