SynopsisStock markets surged on Monday, driven by impressive gains from leading AI companies such as Advanced Micro Devices. Meanwhile, Treasury yields pulled back from their recent highs and crude oil prices fell to an eleven-day low.

Meta's shares skyrocketed after analysts adjusted their price targets post the introduction of its new AI assistant. ReutersThe S&P 500 and Nasdaq ended sharply higher on Monday, lifted by gains in Advanced Micro Devices and other AI heavyweights, while Treasury yields retreated from recent highs and crude prices tumbled to an 11-day low on speculation about a potential breakthrough in Middle East talks at a UN meeting this week.

Chip stocks rallied, with Intel and Arm Holdings both surging. Advanced Micro Devices reached a market capitalization of $1 trillion for the first time.

Investors pointed to signs that suggest spending on AI is still expanding, despite recent safety warnings from leaders of AI giants a week ago that triggered a global tech selloff. 34 per barrel.

While Washington and Tehran exchanged threats through the weekend, US President Donald Trump said he would be open to meeting Iranian President Masoud Pezeshkian, who is expected to attend the UN General Assembly in New York this week." We've been kind of programmed to follow the price of oil and the yield on the US 10-year, and if you look at those two things today, they've shifted from being headwinds to tailwinds for this market, at least in the near term," said Art Hogan, chief market strategist at B.

Riley Wealth. Meta shares soared after Wells Fargo hiked its price target on the social media platform following the recent launch of its Muse AI assistant.

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The S&P 500 last Friday traded at just under 19 times expected earnings, its lowest valuation since 2023, according to LSEG data. AI-related heavyweights are responsible for much of the recent increase in earnings expectations.

Investors remained wary of the interest-rate outlook after the US Federal Reserve last week raised rates for the first time in three years to fight inflation. Traders see a 50% chance of another hike next month, CME's FedWatch showed.

Commentary from at least 10 central bank policymakers is due this week. US-listed shares of companies exposed to Greenl and rose following progress in diplomatic negotiations between the United States and Denmark about the status of Greenl and.