Nasdaq Jumps 1.22% as Oil Falls and Trump-Xi Summit Lifts AI Stocks

Mumbai, Sept 21: US stock markets opened higher on Monday as falling crude oil prices, easing Treasury yields and renewed optimism around artificial intelligence supported a broad recovery after a mostly weaker previous week. The Nasdaq Composite rose 324.12 points, or 1.22%, to 26,846.66, while the S&P 500 gained 56.33 points, or 0.74%, to 7,706.83. The Dow Jones Industrial Average advanced 119.81 points, or 0.23%, to 51,802.45. 

The early gains came as oil prices declined by more than 3%, reducing immediate concerns over energy-driven inflation. Investors also assessed the potential implications of a planned meeting between US President Donald Trump and Chinese President Xi Jinping later this week, with trade, critical minerals and artificial intelligence expected to feature in discussions. 

Nasdaq Leads Opening Gains as Technology Stocks Rebound 

The Nasdaq Composite set the pace among the major US indices during the opening session, rising 1.22% from its previous close of 26,522.54. The index opened at 26,723.19 and traded between 26,707.42 and 26,854.19 during the early session. Reported volume stood at 1.77 billion shares, compared with an average volume of approximately 8.61 billion shares. 

The S&P 500 climbed 0.74% to 7,706.83, after opening at 7,692.83. The broader index moved between 7,691.19 and 7,708.31, while its previous close stood at 7,650.50. The Dow Jones Industrial Average added 0.23%, reaching 51,802.45 from a previous close of 51,682.64. It opened at 51,936.76 and recorded an early range of 51,747.68 to 52,030.86. 

The Russell 2000, which tracks smaller US-listed companies, rose 0.41% to 2,872.21. It opened at 2,860.40 and traded between 2,860.40 and 2,882.69. The index’s reported volume was zero at the time of the market snapshot, indicating that the available reading had not yet reflected regular trading activity. 

The opening gains followed a difficult week for parts of the market. The Dow had declined 1.7% over the previous week, its third consecutive weekly fall and its sharpest weekly decline since March. The S&P 500 slipped approximately 0.1%, while the Nasdaq was the only major index to finish the week higher, gaining around 0.7%. 

Falling Oil Prices Ease Inflation Pressure On Wall Street 

Crude oil prices fell sharply on Monday, providing relief to equity markets after energy costs had become a major source of concern. US West Texas Intermediate crude declined by approximately 3.4%, trading near $96.76 to $97.70 a barrel, while international benchmark Brent crude fell by roughly 3.1% to $100.64 a barrel. 

Other market readings placed Brent near $100.50 to $101.20 a barrel, while US crude traded around $97.09. The different figures reflected changing prices during the opening session. Both benchmarks remained below $100 a barrel, except for Brent, which moved around the threshold during the reported period. 

The decline in crude prices came despite continued Middle East tensions. Iran-backed Houthi forces reported attacks on Saudi Arabia, while disruptions to the East-West oil pipeline raised supply concerns. However, Saudi Arabia could restore part of the pipeline’s capacity within days, while exports reportedly rose above 4 million barrels per day in September from 2.4 million barrels per day in August. Oil prices also fell after Trump indicated openness to meeting Iranian President Masoud Pezeshkian. The prospect of renewed diplomacy reduced geopolitical risk premiums. Lower energy prices eased inflation concerns, supporting shares and government bonds at the start of the week. 

Treasury Yields Slip Below 5% As Stocks Gain Ground 

US Treasury yields declined alongside crude prices, supporting technology and other growth-oriented shares. The 10-year Treasury yield fell below 5%, reaching around 4.957%–4.963%, while the 30-year yield declined to approximately 5.294%–5.298%. Lower yields can support equity valuations by reducing discount rates and easing borrowing-cost concerns.  

Markets remained focused on the Federal Reserve after its 0.25 percentage-point rate increase to 3.75%–4%, its first since July 2023. Traders saw about a 53% chance of another increase in October and an 88% probability of at least one more increase by December. Eight Fed officials were scheduled to speak during the week. Inflation stood at 3.7% in July, above the Fed’s 2% target. 

Also Read: How to invest in US stocks

AI Stocks Surge As Chipmakers Drive Nasdaq Recovery 

Technology and artificial intelligence-linked stocks led the opening session, with semiconductor shares rebounding after concerns over a possible slowdown in AI development pressured the sector the previous week. Intel rose 9.10% to $118.48, while Advanced Micro Devices gained 8.74% to $608.74. Arm Holdings advanced 12.54% to $310.18.  

Marvell Technology climbed 2.29%, Micron Technology gained 3.02%, and Applied Materials rose 2.30%. Lam Research, Qualcomm and Synopsys also advanced 1.32%, 2.93% and 2.41%, respectively. Other semiconductor names strengthened as Astera Labs gained 6.30%, MaxLinear rose 7.16%, Navitas Semiconductor increased 6.47% and AXT climbed 9.10%. DigitalOcean advanced 8.39%. The broad semiconductor recovery supported the Nasdaq and helped offset some of the previous week’s AI-related losses. The move suggested renewed investor attention towards continued AI infrastructure spending, after earlier concerns about development costs, rapid model expansion and the pace of industry growth had weighed on sentiment. 

Meta Gains 6.83% as Large Technology Shares Strengthen 

Meta Platforms was one of the strongest large technology companies during the opening session, rising 6.83% to $710.68 and adding $45.46. Its market capitalisation was listed at approximately $1.81 trillion, while its reported price-to-earnings ratio stood at 25.09. 

Meta’s gain helped support both the Nasdaq Composite and the S&P 500. The company was also reported to be preparing to provide further information about its artificial intelligence strategy at a developer conference later in the week. 

Alphabet’s shares rose, with GOOGL gaining 1.08% in the Nasdaq 100 heatmap and 1.15% in the S&P 500 heatmap, while GOOG advanced 1.41%. Netflix gained approximately 1.29% to 1.32%, and Tesla rose 3.25%. Amazon added around 0.27% to 0.32%. 

Microsoft increased 0.41% in the Nasdaq 100 heatmap and 0.35% in the S&P 500 heatmap. Nvidia rose 0.86%, while Broadcom declined slightly by 0.02%. Apple was marginally lower, falling 0.07% to 0.09%. 

Not all major technology and communications companies rose. T-Mobile declined 3.27% to 3.31%, while Adobe fell approximately 0.59%. Intuit declined 1.15%, and several defensive or consumer-focused companies also moved lower. 

Dow Gains as Healthcare and Banks Offset Energy Weakness 

The Dow’s advance was more limited than the Nasdaq’s because several energy and consumer stocks declined. However, gains in healthcare, financial services and selected technology companies helped keep the blue-chip index in positive territory. 

Johnson & Johnson rose between 1.23% and 1.39%, while Merck gained 1.54%. Amgen advanced 1.21%, and JPMorgan Chase increased 0.85%. Goldman Sachs rose 0.34%, while IBM gained 0.65% and Salesforce added 0.70%. 

Among Dow constituents, Nvidia gained 0.86%, Microsoft rose 0.41%, Alphabet advanced 1.15%, and Amazon added 0.32%. Boeing rose 0.30%, while Visa increased 0.16%. 

Energy companies weakened as crude prices declined. Chevron fell approximately 1.41%, while consumer companies also faced pressure. Home Depot declined 1.07%, McDonald’s fell 0.58%, Nike slipped 0.14%, Coca-Cola declined 0.20%, Procter & Gamble fell 0.20%, and PepsiCo dropped 1.17%. 

The mixed movement within the Dow showed that the opening rally was concentrated in particular sectors rather than evenly spread across the index. Technology and healthcare provided support, while energy and selected consumer names limited the advance. 

S&P 500 Gains Despite Energy and Defensive Sector Declines 

The S&P 500 rose 0.74%, supported by technology, communications services and selected industrial companies. The index’s performance was stronger than the Dow’s but weaker than the Nasdaq’s, reflecting the importance of technology companies in the broader benchmark. 

Meta was among the strongest S&P 500 constituents, rising 7.00% in the heatmap. Intel gained 9.46%, while Advanced Micro Devices climbed 8.39%. Arm Holdings rose 12.02% in the Nasdaq 100 heatmap, and other semiconductor companies also recorded strong gains. 

Warner Bros. Discovery increased 9.35% in the Nasdaq 100 heatmap and 7.00% in the S&P 500 heatmap. Paramount Skydance rose 10.58% to $11.29, adding $1.08, while Warner Bros. Discovery traded at $30.34, up $2.54, or 9.14%, in the reported stock-movement list. 

Energy shares declined as crude prices fell. Exxon Mobil decreased 1.99%, Chevron fell 1.41%, and ConocoPhillips dropped 2.26%. Phillips 66 declined 0.89%, while Marathon Petroleum fell 0.74%. 

Industrials also recorded mixed performance. United Parcel Service declined 2.15%, while General Electric rose 0.12%, Eaton increased 0.91%, Deere gained 0.46%, and GE Vernova rose 1.95%. Consumer defensive shares were generally weaker, with Costco down 0.68%, PepsiCo lower by 1.17%, and Philip Morris down 0.33%. 

Paramount and Warner Bros Rise on Merger Settlement Talks 

Shares of Paramount Skydance and Warner Bros. Discovery rose sharply after reports that Paramount was in advanced discussions with state attorneys general over a potential settlement linked to its proposed Warner Bros. Discovery acquisition. Paramount Skydance gained 10.58%, while Warner Bros. Discovery rose more than 9% in early trading. California Attorney General Rob Bonta was reportedly seeking progress on the antitrust lawsuit challenging the transaction.  

However, New York Attorney General Letitia James was seeking additional worker protections, while Connecticut and other states remained concerned about the proposed remedies. The transaction, valued at around $81 billion, remained subject to legal and regulatory developments. 

Also Read: What Is the New York Stock Exchange (NYSE)?

Bitcoin Tops $85,000 as Crypto Stocks Gain 

Bitcoin climbed around 4%–6%, moving above $85,000 and reaching approximately $85,229.44, its highest level since January. Strategy gained more than 8% to $166.75, while Coinbase, Robinhood Markets, Circle and MARA Holdings also advanced. The rally followed recent US regulatory developments involving tokenised stock trading and proposed cryptocurrency market rules.  

Short covering also supported prices, with more than $300 million in bitcoin short positions reportedly liquidated over 24 hours. Improved risk appetite, lower oil prices and expectations of better US-China relations further supported crypto-linked assets. 

Greenland-Linked Stocks Surge After Security Deal 

US-listed companies linked to Greenland surged after Trump announced a proposed security agreement involving the US, Denmark and Greenland. Greenland Energy rose more than 144%, Greenland Mines gained nearly 70%, and Critical Metals advanced more than 30% in early trading. The proposed agreement included plans for a larger US military presence on the island. The announcement also increased market attention towards Greenland’s strategic mineral resources and its importance in Arctic security arrangements. 

Oura Plans IPO At Up To $14.1 Billion Valuation 

Smart-ring maker Oura and its shareholders filed plans to offer 50 million shares at a proposed price of $40 to $44 per share. At the upper end of that range, the Finnish company would be valued at approximately $14.1 billion. 

Oura plans to list under the ticker OURA. The company makes wearable rings that track more than 50 health metrics. It sold approximately 3.6 million smart rings during the previous year, with products priced between $399 and $499. 

The proposed offering is being led by Goldman Sachs, Morgan Stanley, JPMorgan, Allen & Company and Jefferies. The filing provided the proposed share count and price range, but the listing remained subject to the usual offering process and market conditions. 

Novo Nordisk Falls 7% Despite $23 Billion Pipeline Target 

Novo Nordisk declined as much as 7.38% to $40.05, falling $3.19 during the session. The Danish pharmaceutical company’s market capitalisation was listed at approximately $176.85 billion, with a reported price-to-earnings ratio of 10.75. 

The decline followed the company’s presentation of new growth ambitions for its obesity-drug pipeline. Novo Nordisk said it aimed to launch more than five medicines with multi-blockbuster potential by 2030 and generate more than 150 billion Danish kroner, or approximately $23 billion, in pipeline sales by 2035. 

The company is seeking to strengthen its position in the obesity-treatment market, which it helped pioneer but where competition has expanded. Novo Nordisk shares had already fallen 28.78% over the reported 52-week period, with the stock’s 52-week range listed at $35.12 to $64.16. 

Small-Cap Stocks Rise But Market Breadth Remains Uneven 

The Russell 2000 advanced 0.41%, but the broader market continued to show uneven participation. More than 50% of S&P 500 companies were reported to be trading below their 200-day moving averages, even though the benchmark index remained only around 3% below its August all-time high. 

Downside volume on the New York Stock Exchange was reported at approximately 54% of total volume, close to the year’s highest levels. The Russell 2000 was also reported to be more than 5% below its recent high. 

Several smaller technology and healthcare companies posted strong gains. GRAIL rose 23.19% to $99.50, adding $18.73. DigitalOcean gained 8.39%, AXT advanced 9.10%, and DOCS-related technology names also moved higher. Among other small-cap gainers, IonQ rose 2.94%, Rocket Lab advanced 6.69%, and Cerebras Systems gained 6.27%. 

Energy-related small-cap shares were weaker. SM Energy declined 3.75%, Murphy Oil fell 2.78%, Matador Resources dropped 3.03%, and Patterson-UTI Energy declined 3.44%. The contrasting performance highlighted the effect of lower crude prices on energy companies and the strength of the technology-led opening rally. 

Trump-Xi Summit Places Trade And AI At Centre Stage 

The planned meeting between Trump and Xi in Washington on Thursday remained a central focus for markets. Xi was scheduled to visit the United States from 23 to 25 September, with discussions expected to cover tariffs, artificial intelligence, critical minerals and the continuation of the trade truce. 

US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng held lengthy discussions in New York ahead of the summit. Bessent described the talks as a successful engagement and said the two countries had discussed establishing a US-China AI dialogue. 

The proposed dialogue would focus on artificial intelligence, including a possible notification system for incidents involving national security. The US side said the mechanism could improve communication and transparency between the world’s two leading AI powers. Chinese state media confirmed that AI had been discussed but provided fewer details about the proposal. 

The two countries were also reported to be discussing reciprocal tariff reductions covering approximately $30 billion of goods from each side. Markets were therefore watching the summit for indications regarding tariffs, trade relations, technology rules and China’s possible role in Middle East diplomacy. 

Also Read: US Stock Market Timings

US-Iran Developments Keep Oil and Rates in Focus 

Geopolitical developments between the United States and Iran remained closely linked to the market outlook through their effect on crude oil and inflation. Washington and Tehran exchanged threats during the weekend, while Iran-backed Houthi forces reported attacks on Saudi Arabia. 

At the same time, Trump indicated that he could meet Pezeshkian during the United Nations General Assembly. Diplomatic engagement raised hopes that tensions could ease, even though the wider conflict remained unresolved. 

The direction of oil prices remained important for the Federal Reserve’s policy outlook. Persistently high energy costs could add to inflation and increase pressure for further interest-rate increases, while a sustained decline in crude prices could reduce some of that pressure. The market’s opening move reflected the immediate effect of lower oil and bond yields, without removing uncertainty around future policy decisions. 

Monday’s opening session was shaped by falling oil prices, Treasury yields below 5%, stronger semiconductor shares, rising bitcoin and expectations surrounding the Trump-Xi summit. The Nasdaq led the advance at 1.22%, while the Dow gained 0.23% and the S&P 500 rose 0.74%. Market conditions remained sensitive to crude prices, Federal Reserve commentary, US-Iran developments and US-China negotiations. 

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