US stock markets experienced notable gains on Monday, driven by optimism over potential diplomatic advancements in the Middle East and declining oil prices. The Dow Jones Industrial Average rose by 0.7% to 52,035 points, following a 1.7% decline the previous week. The S&P 500 increased by 1.5% to 7,763 points. The Nasdaq 100, a technology-heavy index, saw the most significant gains, rising by 2.6% to 30,424 points, marking its highest level in three months.
The falling oil prices, with Brent crude for November delivery dropping below $100 per barrel, alleviated recent inflation concerns. The price of Brent crude had previously reached its lowest point since September 9. US President Donald Trump's potential meeting with Iranian President Masoud Pezeshkian at the UN General Assembly, along with the upcoming Trump-Xi Jinping summit on Wednesday, fueled speculation about resolutions to Middle East conflicts.
The meeting is also expected to address the topic of artificial intelligence (AI), which has been a significant driver for US tech stocks. US Treasury Secretary Scott Bessent mentioned that the US has proposed a mechanism to ensure secure information exchange for AI development with China. The focus on AI has been a key factor in the recent performance of tech stocks.
Tech stocks, particularly those in the AI sector, saw substantial gains. Meta's stock rose by 11.5% to its highest level in eleven months, driven by optimism over its AI agent product, Muse, launched this month. ARM Holdings and Intel saw increases of 16% and 12% respectively. Accenture's stock also rose by 2.8%, following a partnership with AI platform provider Anthropic to test the security of its advanced models.
Cryptocurrency stocks also benefited from Bitcoin reaching its highest level since January. Strategy and Coinbase saw increases of 7.5% and 4.7% respectively.
Warner Bros. Discovery and Paramount Skydance saw gains of 11.1% and 2.9% respectively. Paramount reached an agreement with several US states to resolve a legal challenge to its acquisition of Warner Brothers, which was valued at over $110 billion. The agreement includes provisions for increased investment in the US and Hollywood.
UPS stocks fell by 4.6%. Bank of America reduced its target price for UPS stocks and lowered its revenue and earnings projections for 2026.
