- US stocks rose as oil prices and Treasury yields declined, easing investor concerns
- Dow Jones gained 318 points, S&P 500 up 0.58%, and Nasdaq rose 0.77% on Monday
- Tech and AI stocks led gains, with Intel up over 6% and AMD rising more than 4%
US stocks rallied on Monday as a decline in oil prices and Treasury yields offered some relief to investors, with Wall Street looking to recover from a mostly weaker trading week.
The Dow Jones Industrial Average rose 318 points, or 0.62%, while the S&P 500 and Nasdaq Composite advanced 0.58% and 0.77%, respectively.
The gains come after a mixed performance last week. The Dow fell 1.7%, marking its worst weekly performance since March, while the S&P 500 slipped around 0.1%. The tech-heavy Nasdaq was the exception, rising 0.7% over the week.
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Technology and artificial intelligence-related stocks were among the notable gainers in trading on Monday. Intel shares jumped more than 6%, while Dell Technologies gained more than 1%. Advanced Micro Devices also rose more than 4%.
The gains in semiconductor and AI-linked stocks helped lift the Nasdaq, which had outperformed the broader market last week despite declines in the Dow and S&P 500.
Oil Prices Ease
A sharp decline in crude oil prices supported Monday's move higher in equities. US crude fell around 3% to $97.09 per barrel, while international benchmark Brent crude declined more than 3% to $100.50 a barrel. The fall in oil prices came despite renewed tensions in the Middle East over the weekend. Iran-backed Houthis said they attacked Saudi Arabia with missiles and drones on Saturday.
Later that day, the US State Department advised Americans to reconsider travel to the Middle East as tensions between the US and Iran escalated, with both sides exchanging threats of renewed attacks.
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The decline in oil prices appeared to ease some concerns over the potential inflationary impact of higher energy costs, which has remained a key concern for investors.
Treasury Yields Decline
US Treasury yields also moved lower on Monday, providing additional support to stocks. The yield on the benchmark 10-year Treasury note fell more than 3 basis points to 4.957%, while the 30-year Treasury bond yield also declined by more than 3 basis points to 5.294%.
Lower yields can provide some relief to equity valuations, particularly for growth and technology stocks, by reducing the relative attractiveness of fixed-income assets and easing pressure on borrowing costs.
Investors are closely watching the bond market as the US continues to grapple with persistent inflation and elevated borrowing costs.
Fed Policy In Focus
The Federal Reserve remains a key focus for Wall Street following its decision to raise interest rates last week for the first time in three years. The rate hike comes as policymakers continue to deal with sticky inflation, while higher Treasury yields have added to financial conditions for businesses and consumers.
Investors will be watching upcoming economic data and Fed commentary for clues on the central bank's next policy moves.
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