(Sept 22) : A rally in technology giants sent stocks to their best day since early August, with the market also gaining as oil prices sank on hopes for diplomatic efforts to end the war in Iran.

The rise in equities sent the S&P 500 up 1.5%. Chipmakers surged as early signs of success for Meta Platforms Inc.’s AI agent sparked enthusiasm about the industry. The social-media firm jumped 11%. Advanced Micro Devices Inc. topped US$1 trillion. The Nasdaq 100 rose 2.8%. Brent crude settled around US$100. Treasury 10-year yields fell below 5%. Bitcoin surpassed US$86,000.

“With economic growth resilient and earnings still robust, we believe investors should remain positioned for market upside,” said Ulrike Hoffmann-Burchardi at UBS Chief Investment Office. “Exposure to transformational innovation could be a key differentiator in long-term equity performance.”

Traders also kept a close eye on the latest geopolitical developments. President Donald Trump told Fox News he’d “probably” be open to meeting his Iranian counterpart, Masoud Pezeshkian, on the sidelines of the UN General Assembly.

“Signs of diplomacy could ease oil prices and inflation fears, while further escalation or disruptions to regional exports could send crude higher, pressure consumers and complicate the Fed’s next move,” said Jay Woods at Freedom Capital Markets.

Wall Street is also gearing up for this week’s summit between Trump and Chinese President Xi Jinping, with officials offering upbeat assessments of their talks on AI, trade and investment.

“Traders are looking for news on any agreements that may reduce tariffs or improve access to critical minerals,” said Woods. “Any positive developments on that front could lift equities particularly those in technology, industrial and consumer stocks.”

The flipside is that a breakdown in talks could revive trade-war concerns and market swings, he added.

US equities are vulnerable to a further increase in energy prices and bond-market volatility, according to Morgan Stanley’s Michael Wilson.

“Should the correction in valuation take a turn for the worse in the near term due to a further tightening of financial conditions and/or materially higher energy prices, we think the S&P 500 could trade as low as 7,100 before the bull market resumes into year end,” Wilson wrote. 

The gauge closed at 7,764.70 on Monday.

uploaded by Isabelle Francis