Wall Street climbed near its all-time high on Monday as global stock markets rallied. The recovery followed a pullback in oil prices and bond yields, which had rattled investors last week amid ongoing conflict in the Middle East and diplomatic talks in New York.
Wall Street pushed toward its all-time high on Monday, with major indexes rebounding worldwide after a volatile week driven by surging energy costs and spiking bond yields. The S&P 500 jumped 1.5 per cent to finish within 0.4 per cent of the record it set last month. The index rose 114.20 points to 7,764.70.
The Dow Jones Industrial Average added 366.19 points, or 0.7 per cent, to close at 52,048.83. Meanwhile, the Nasdaq composite leaped 2.3 per cent, gaining 599.55 points to reach 27,122.09, powered higher by artificial intelligence and chip stocks that led a broader market recovery.
Energy Markets Ease Following Last Week’s Spikes
Stocks found relief as the price of crude oil retreated from dramatic highs. International benchmark Brent oil fell 3.4 per cent to US$100.34 a barrel, according to BNN Bloomberg reporting, while other sources noted the same pricing at $100.29 USD. While that figure remains elevated compared to a summer baseline of roughly $72, it marks a significant drop from the nearly $110 touched the previous week.
Energy supplies continue to face pressure from geopolitical conflict. Crude from the Middle East is navigating the Strait of Hormuz despite the war with Iran, though volume remains well below industry demand. ING commodities strategists Ewa Manthey and Warren Patterson noted that investor profit-taking after the recent oil surge, combined with diplomatic optimism at the United Nations General Assembly, helped steady the market.
The ripple effects of high energy costs continue to hit American consumers at the pump. According to AAA data, the average price for a gallon of regular gasoline across the United States has climbed to nearly $4.48 USD. That figure compares with less than $4.32 USD a week earlier and $3.18 USD a year ago.
Treasury Yields Retreat From Multi-Year Highs
The pullback in oil prices provided immediate relief to the bond market. The yield on the 10-year Treasury eased to 4.95 per cent, down from 5.01 per cent late Friday, after crossing the 5 per cent threshold last week for the first time since 2023. Other reports indicated a slightly different finishing yield of 4.97 per cent, noting that yields had breached the five per cent mark for the first time in three years.
Bond yields have climbed recently due to persistent inflation worries and heavy government debt loads worldwide. Elevated yields increase borrowing costs for the U.S. government, businesses, and households alike. Morgan Stanley’s Michael Wilson warned that another upward surge in oil, gasoline, and refined products remains the primary near-term risk capable of blocking the U.S. stock market from reaching his year-end forecasts.
Diplomatic Engagements in New York and Beijing
Optimism was further bolstered by high-level diplomatic talks. U.S. Treasury Secretary Scott Bessent met with Chinese Vice Premier He Lifeng in New York on Sunday. Following the discussions, Bessent told reporters that the United States had a very successful engagement
with the Chinese delegation.
The U.S. had a very successful engagement with the Chinese side.
U.S. Treasury Secretary Scott Bessent
Bessent noted that the talks touched on trade and artificial intelligence. Both nations have been discussing reciprocal tariff reductions covering $30 billion worth of goods from each side. Meanwhile, China’s Foreign Ministry confirmed in Beijing that Xi Jinping will pay a state visit to the United States from September 23 to 25, with trade, tariffs, and AI safety expected to top the agenda.
Sector Gains Led by Tech, Crypto, and Media
Technology and artificial intelligence shares rebounded sharply following a worldwide slide at the start of last week. Advanced Micro Devices rallied 9.9 per cent to push its total market value to US$1 trillion, while Nvidia added 2.3 per cent. Analysts point out that despite industry leaders warning that development may need a safety slowdown, demand for high-powered chips remains robust.
Cryptocurrency-linked stocks also surged as bitcoin prices climbed back above $86,000, returning to January levels. Coinbase Global gained 3.5 per cent, and Robinhood Markets rose 2.9 per cent. In media, Warner Bros. Discovery leaped 10.8 per cent after 12 states and Hollywood writers settled lawsuits challenging its buyout by Paramount, whose parent company, Paramount Skydance, fell 2.9 per cent.
International markets mirrored Wall Street’s upward momentum. Stock indexes gained 0.9 per cent in France, 1.2 per cent in Hong Kong, and 1.6 per cent in South Korea as easing commodity prices and bond pressures lifted sentiment globally.
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