Wall Street reached near-record levels on Monday as key stock indexes rallied following declines in oil prices and bond yields that had unsettled markets the previous week. The S&P 500 increased by 1.5% to 7,764.70, coming within 0.4% of its all-time high set last month. The Dow Jones Industrial Average rose 366.19 points, or 0.7%, to 52,048.83, while the Nasdaq composite surged 2.3% to a new record of 27,122.09, buoyed by strong performances in chipmakers and artificial intelligence (AI) companies.

Oil prices eased as Brent crude fell 3.4% to $100.34 per barrel, down from a peak near $110 reached last week, though still significantly above the approximately $72 price noted earlier this summer. Market volatility in oil has been tied to disruptions in Middle Eastern crude shipments through the Strait of Hormuz amid ongoing conflict involving Iran. Despite some flow resuming, supply constraints have kept prices elevated.

Oil price moderation helped ease pressure on the bond market. The yield on the 10-year U.S. Treasury note dropped slightly to 4.95% from 5.01% late Friday, retreating after having crossed the psychologically significant 5% mark for the first time since 2023. Rising yields, driven by inflation concerns, heavy government debt, and global economic uncertainty, have increased borrowing costs for governments, businesses, and consumers, contributing to market nervousness.

Analysts cited the continued growth and profit strength of major U.S. companies as a key factor supporting the bullish stock trend, though caution remains. Michael Wilson, chief U.S. equity strategist at Morgan Stanley, identified the risk of further increases in oil, gasoline, and refined product prices as a potential obstacle to the market reaching his year-end price targets. Gasoline prices nationwide have climbed to an average of nearly $4.48 per gallon, up from less than $4.32 the previous week and $3.18 a year ago, according to the American Automobile Association.

Investor sentiment was further lifted by expectations for diplomatic progress at this week’s United Nations General Assembly and an upcoming state visit by Chinese President Xi Jinping to the United States scheduled for September 23 to 25. Treasury Secretary Scott Bessent described recent talks in New York with Chinese Vice Premier He Lifeng as a “very successful engagement.” Key issues anticipated to feature during the visit include trade relations, tariffs, and AI safety regulations.

On the technology front, companies involved in AI rebounded after a global selloff earlier last week. Some AI sector leaders have recently called for a slowdown in development to address safety concerns. Yet, demand for semiconductor chips to power such technologies is expected to remain strong. Advanced Micro Devices (AMD) rallied nearly 10%, pushing its market capitalization above $1 trillion, while Nvidia gained 2.3%.

Cryptocurrency-related stocks also contributed to market gains amid a rebound in bitcoin prices, which surpassed $86,000—levels seen at the start of the year. Coinbase Global climbed 3.5%, and Robinhood Markets rose 2.9%.

In corporate news, Warner Bros. Discovery’s shares jumped 10.8% following a settlement agreement in lawsuits filed by 12 states and Hollywood writers opposing its acquisition by Paramount. Paramount Skydance shares slipped 2.9% on the news.

Global stock markets mirrored Wall Street’s strength, with index gains of 0.9% in France, 1.2% in Hong Kong, and 1.6% in South Korea, supported by easing oil prices and bond yields.