The S&P 500 jumped 1.5% Monday, its best day since Aug. 4, as artificial-intelligence names powered a broad rally across the major indices. Futures were little changed Monday night as traders looked ahead to a Trump-Xi summit in Washington and a batch of Federal Reserve speeches.
AI stocks power the rally
The S&P 500 climbed 1.5% on Monday, its sharpest one-day gain since Aug. 4. The Nasdaq Composite jumped 2.3% for its first closing record since June, while the Dow Jones Industrial Average rose 366 points, or 0.7%.
Tech names tied to artificial intelligence drove the advance. Meta Platforms surged more than 11%, while Intel and Advanced Micro Devices jumped 12% and roughly 10%, with AMD touching a $1 trillion market cap. Nvidia gained 2%, and fiber-optic maker Corning advanced almost 6%.
Futures pointed to a quieter Tuesday session. S&P 500 futures added 0.02%, while Nasdaq-100 futures gained 0.2% and Dow futures inched up 4 points, or 0.01%, in Monday evening trading.
A warning sign beneath the surface
But the rally masked a troubling split. More stocks within the S&P 500 tumbled to fresh 52-week lows than rose to new 52-week highs, even as the index sat less than 1% from its all-time high. According to Jason Goepfert, founder of SentimenTrader, the last time the index gained 1% while sitting within 1% of a fresh 52-week high, with new lows outnumbering new highs, was in December 1999.
Falling oil and yields, Trump-Xi summit ahead
A drop in oil prices helped fuel the gains. West Texas Intermediate crude futures fell 4.5% to $95.78 a barrel, while Brent crude settled more than 3% lower at $100.34 a barrel. The 10-year Treasury yield slid more than 4 basis points to 4.951%. Even before the Federal Reserve raised its key interest rate by a quarter point last week, yields had been trending higher as the economy contends with rising debt, elevated oil prices, and stubborn inflation.
Traders are now watching this week's Washington summit between President Donald Trump and Chinese leader Xi Jinping, where artificial intelligence, the Iran war, tariffs, and rare earth metals are expected to feature. Treasury Secretary Scott Bessent met with Chinese Vice Premier He Lifeng ahead of the visit. Tuesday also brings the Richmond Fed's manufacturing survey and speeches from New York Fed President John Williams and Richmond Fed President Tom Barkin.
Source: US Top News and Analysis
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