The Nasdaq Composite closed at a record 27,122.09 on Monday, up 2.26%, its first record close since June. Meta Platforms jumped 11.34% on demand for its new Muse AI assistant, and the rally spread to chipmakers AMD, Intel and Arm Holdings. Falling oil prices and lower Treasury yields gave the broader market room to advance alongside it.
The Nasdaq Composite closed at a record 27,122.09, up 2.26%, as technology shares led Monday's rally. The S&P 500 gained 114.18 points to 7,764.69, up 1.49%, while the Dow Jones Industrial Average added 366.04 points to close at 52,054.19, up 0.71%.
Falling oil prices and easing Treasury yields provided a friendlier backdrop for growth stocks, but the size of the Nasdaq's gain shows where buyers pushed hardest.
Meta's Muse rally spreads to chips
Meta was the session's headline mover after its Muse AI personal assistant became the most downloaded free app on Apple's App Store, taking the stock's gains to about 35% over the past month. The share price rose 11.34%, its best day since April 2025. The gain added $192.3bn in market capitalisation, its third-biggest one-day increase on record.
Chip stocks tied to the AI trade rose alongside it. Arm Holdings closed at $322.90, up 17.16%, while Intel gained 12.17% to $121.81.
AMD rose 9.95% to $615.52 and crossed $1 trillion in market value during the session. According to the Financial Times, Mike O'Rourke, chief market strategist at Jones Trading, said: "Meta is being repriced as an AI leader."
Oil and yields add a tailwind
Brent crude, the global oil benchmark, fell as much as 4% to $99.02 a barrel before settling 3.4% lower at $100.34, as investors bet the UN General Assembly this week could bring diplomatic progress on the Middle East conflict. The 10-year US Treasury yield fell 0.04 percentage points to 4.96%, having touched 5% for the first time since 2023 last week.
As the US struggles with taming sticky inflation and elevated bond yields, the Federal Reserve delivered its first rate hike in three years last week.
What the record close means for traders
The Nasdaq's record close shows buyers pushed through the prior closing high and held the index above it at the bell. The next test is whether they can stay above that breakout area in subsequent sessions — a move back below it would call the strength of Monday's rally into question.
Sources: Investinglive, Financial Times, CNBC
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