US stocks rallied on Monday, led by technology shares as falling oil prices and Treasury yields supported broader market sentiment.
The S&P 500 climbed 1.49% to 7,764.70, while the Nasdaq Composite jumped 2.26% to a record close of 27,122.09. The Dow Jones Industrial Average gained 366.19 points, or 0.71%, to 52,048.83.
AI and semiconductor stocks led the advance. Intel surged 12%, AMD gained around 10% and Qualcomm rose more than 9%. The S&P 500 is now within 0.4% of its record high set last month.
Treasury yields eased alongside oil, with the US 10-year yield falling more than 4 basis points to 4.95%. The decline followed last week’s first Federal Reserve rate increase in three years.
Oil prices fell sharply despite further developments in the Iran war over the weekend. WTI dropped 4.5% to US$95.78 a barrel, while Brent declined 3.4% to US$100.34.
Investors are also looking ahead to a meeting between US President Donald Trump and Chinese President Xi Jinping this week, with AI, tariffs and critical minerals expected to be among the key economic issues discussed.
Australian Market Outlook
Australian shares are set to open higher, with S&P/ASX 200 futures up 29 points, or 0.3%, to 8,809.
The positive lead follows strong gains on Wall Street and easing global bond yields, while the sharp fall in oil prices could help reduce some recent inflation concerns.
Technology stocks may benefit from the strong overnight performance in US semiconductors, while energy stocks could face pressure following the drop in crude prices. Investors will continue to monitor developments in the Iran war and the outlook for global interest rates.
