The S&P 500 jumped 1.49% and the Nasdaq closed at a record on Monday as a Meta-led rally spread to chipmakers. Three Fed officials argued for more rate hikes even as a sharp drop in oil eased some inflation pressure.
The S&P 500 rose 114.18 points, or 1.49%, to 7,764.69 on Monday. The Nasdaq Composite closed at a record 27,122.09, up 2.26%.
The Dow Jones Industrial Average added 366.04 points, or 0.71%, to 52,054.19. But the gains came alongside fresh warnings from Fed officials that inflation could still require further rate hikes.
Meta's rally lifts the broader market
Meta's stock rose about 12%, its best day since January 29, on enthusiasm around its Muse AI assistant. That enthusiasm spread to chipmakers seen as beneficiaries of AI demand.
Arm Holdings gained 17.16% to $322.90. Intel climbed 12.17% to $121.81.
AMD rose 9.95% to $615.52, crossing $1 trillion in market value during the session.
European markets followed the move higher. Germany's DAX gained 1.07% to 25,575.02, while Italy's FTSE MIB led on a percentage basis with a 1.60% rise.
Fed officials keep the hike debate alive
St. Louis Fed President Alberto Musalem said interest rates likely need to rise further to bring inflation under control, citing both demand and supply pressures. Boston Fed President Susan Collins said she had penciled in another hike this year and expects rates to hold in 2027. Chicago Fed President Austan Goolsbee said persistent supply shocks, including energy costs and tariffs, could require higher rates even if that hurts employment.
Markets priced about a 55% chance of an October Fed hike, according to the report. Yet longer-term Treasury yields moved the other way: the 10-year yield fell 4.50 basis points to 4.9510%, while the 2-year edged up 0.75 basis points.
Oil's slide eases some pressure
October light crude fell 4.87% to $95.42. Brent traded on both sides of the $100 mark before settling near $100.05, down 3.68%. The pullback offered some relief after the recent rise in energy prices tied to the Middle East conflict, though officials made clear their inflation concerns extend beyond oil.
Source: Investinglive (Investinglive RSS Breaking News Feed)
Trading involves risk.
Risk Disclaimer
