Global Markets Rise as Oil Falls Below $100 – Sept. 22

ST. LOUIS, MO – September 22, 2026 (STL.News) Global Markets – Global stock markets were mostly higher Tuesday as an artificial intelligence-led rally on Wall Street carried into overseas trading while crude oil fell below $100 a barrel, easing some of the inflation and interest-rate concerns that rattled financial markets last week.

Asian equities generally advanced, although Japan’s market was closed for a public holiday. European shares also opened modestly higher as investors assessed renewed enthusiasm for technology stocks, lower oil prices, and a retreat in U.S. Treasury yields.

The improved market tone followed a powerful Monday rally on Wall Street. The Nasdaq Composite reached a record closing high as semiconductor and other AI-related stocks surged, while the S&P 500 moved to within 0.4% of its record.

At the same time, Brent crude continued retreating from the nearly $110 level reached last week. Reuters reported Tuesday that Brent fell to a two-week low below $100 as investors considered the possibility of additional Persian Gulf oil supplies and Iran signaled that it could conditionally reopen the Strait of Hormuz.

The developments have created a more constructive backdrop for equities, although considerable geopolitical, inflation and interest-rate risks remain.

Global Markets – Overseas Market Snapshot

Source: Associated Press early-market snapshot Tuesday, Sept. 22, 2026. European markets were still trading when these figures were reported, and market levels can change throughout the session.

Global Markets – Asian Markets Mostly Move Higher

Global markets entered Tuesday with much better momentum than they had during parts of last week.

Hong Kong’s Hang Seng Index gained 0.2% to 25,087.75 in AP’s early Tuesday snapshot. Australia’s S&P/ASX 200 advanced 0.3% to 8,757.80, while South Korea’s Kospi rose 0.2% to 7,017.91.

China’s Shanghai Composite was nearly unchanged, gaining less than 0.1% to 3,952.13.

Japan was the notable exception because there was no Tuesday cash-market session. Tokyo’s market was closed for an extended public holiday and is scheduled to resume trading Thursday.

The generally positive Asian performance followed Monday’s significant U.S. rally and reflected renewed investor appetite for technology and semiconductor shares.

The S&P 500 jumped 114.20 points, or 1.5%, Monday to close at 7,764.70. That left the benchmark approximately 0.4% below its record.

The Dow Jones Industrial Average gained 366.19 points, or 0.7%, to 52,048.83.

The technology-heavy Nasdaq Composite performed considerably better, surging 599.55 points, or 2.3%, to a record close of 27,122.09.

The Russell 2000 index of smaller companies gained 14.96 points, or 0.5%, to 2,875.36.

Falling oil prices and declining Treasury yields helped remove two pressures that weighed on equities the previous week.

Global Markets – Artificial Intelligence Stocks Lead Rally

Artificial intelligence and semiconductor stocks drove Monday’s Wall Street rally and continued to influence sentiment overseas Tuesday.

Reuters reported that Advanced Micro Devices surged 9.6% to $613.31 during Monday’s trading, pushing the semiconductor company’s market capitalization above $1 trillion for the first time.

AMD became the fourth U.S. chipmaker to cross the $1 trillion valuation threshold, joining Nvidia, Broadcom and Micron.

The move followed renewed investor enthusiasm surrounding artificial intelligence infrastructure after months in which markets had increasingly questioned the enormous amount of capital being committed to AI development.

Reuters reported that AMD shares had risen 185% during 2026 as of Monday’s session.

Other semiconductor companies participated in the rally.

Intel jumped approximately 12%, while Arm Holdings surged sharply and the Philadelphia Semiconductor Index gained more than 4% Monday.

Meta Platforms was another major contributor to the technology rally, climbing more than 11% as investors responded enthusiastically to the company’s new Muse artificial intelligence assistant.

The strength in technology shares helped push the Nasdaq to a record and provided momentum for Asian technology stocks Tuesday.

South Korea also provided another indication of strong semiconductor demand. Reuters reported that South Korean exports during the first 20 days of September rose 78.3% from a year earlier to $71.4 billion, the strongest 20-day performance on record, while semiconductor shipments increased 259.4%.

Those figures reinforced investor expectations that demand for computing infrastructure remains strong.

Global Markets – Oil Falls Below $100

Oil provided perhaps the most important macroeconomic development of Tuesday’s overseas session.

Reuters reported that November Brent crude futures fell $2.01, or 2%, to $98.33 a barrel at 10:27 GMT Tuesday.

October West Texas Intermediate crude, which expires Tuesday, dropped $2.50, or 2.61%, to $93.28 a barrel.

The more actively traded November WTI contract declined $2.45, or 2.65%, to $89.92 a barrel.

All three contracts touched their lowest levels since Sept. 8.

The decline follows an extraordinary period of volatility in global energy markets.

Brent approached $110 a barrel last week before retreating. On Monday alone, Brent dropped 3.4% to settle at $100.34, according to AP.

Oil nevertheless remains considerably more expensive than it was earlier this summer, when Brent was trading around $72.

That means Tuesday’s decline represents meaningful relief for financial markets without eliminating the inflationary consequences of elevated energy prices.

Global Markets – Iran Offers Conditional Hormuz Reopening

The Strait of Hormuz remains central to the oil market.

A senior Iranian official told Reuters Tuesday that Iran could reopen the strategic waterway within seven days if the United States eases military pressure and lifts its blockade on Iranian ports.

The official also said Iran’s delegation attending the United Nations General Assembly in New York has authority to pursue diplomatic engagement with the United States.

No agreement to reopen the strait has been announced.

Iran’s position is therefore a conditional proposal, not confirmation that normal shipping will resume.

That distinction matters because the Strait of Hormuz is one of the world’s most important energy transportation routes.

Before U.S.-Israeli attacks on Iran began in late February, approximately one-fifth of global oil and liquefied natural gas supplies moved through the strait, according to Reuters.

Shipping has improved somewhat in recent weeks with U.S. Navy assistance to commercial vessels, but AP reports that oil flows remain significantly below prewar levels.

That disruption has helped keep Brent crude near $100 even after its retreat from last week’s highs.

Global Markets – Saudi Arabia Adds Another Supply Route

Saudi Arabia provided another potentially important development for global energy markets Tuesday.

Reuters reported that Saudi Arabia restarted operations on its East-West Pipeline and could resume exports from the Red Sea port of Yanbu.

Three sources briefed Reuters on the matter confirmed the pipeline restart, although two said it was operating at a low rate.

The East-West Pipeline provides Saudi Arabia with an important alternative route for transporting crude without relying exclusively on the Strait of Hormuz.

Saudi Aramco has also increased exports through Hormuz after attacks on the East-West Pipeline previously forced it to halt some shipments through Yanbu.

Tanker-tracking data cited by Reuters showed approximately 14 million barrels of Saudi crude were loaded onto seven supertankers inside the Gulf Sunday.

Iran’s conditional Hormuz proposal and Saudi Arabia’s efforts to increase exports contributed to expectations that additional oil supplies could reach global markets.

Those expectations helped push crude prices lower Tuesday.

Global Markets – Energy Risks Have Not Disappeared

The decline in crude should not be interpreted as a return to normal conditions in global energy markets.

Reuters reported that diesel prices in Europe and the United States have climbed to record levels as the wars involving Iran and Ukraine disrupted exports from major producers.

Ole Hansen, head of commodity strategy at Saxo Bank, told Reuters that substantial additional downside in crude could be difficult without increased flows through the Strait of Hormuz, particularly for refined petroleum products.

That distinction is important for inflation.

Lower crude prices can eventually reduce pressure on gasoline, transportation and manufacturing costs, but shortages or elevated prices for refined products can continue affecting businesses and consumers even when benchmark crude contracts decline.

The energy market therefore remains one of the most important variables for investors.

Global Markets – Treasury Yields Retreat

Bond yields provided another source of support for equities.

The benchmark 10-year U.S. Treasury yield fell to 4.95% Monday from 5.01% Friday, according to AP.

That decline was significant because the 5% level had become an important psychological threshold for financial markets.

Higher Treasury yields increase borrowing costs throughout the economy and can make government bonds more attractive relative to equities.

They can be particularly challenging for high-growth technology companies because investors frequently value those businesses based on profits expected years into the future.

Lower yields reduce some of that pressure.

Monday’s simultaneous decline in oil prices and Treasury yields therefore created a favorable combination for technology stocks.

Global Markets – Inflation Remains a Major Concern

Despite the improvement in oil and bond markets, inflation remains an important concern.

Federal Reserve officials continue to signal that price pressures have not been eliminated.

Reuters reported Tuesday that Chicago Federal Reserve President Austan Goolsbee recently pointed to services and demand-driven inflation as concerns alongside elevated energy prices.

The relationship between oil and monetary policy therefore remains critical.

If crude continues declining and eventually reduces transportation and production costs, one source of inflation pressure could weaken.

If oil rebounds sharply because of renewed disruptions in the Middle East, inflation expectations could rise again.

That could place renewed upward pressure on Treasury yields and create another challenge for equities.

Global Markets – European Markets Open With Modest Gains

European stocks also opened generally higher Tuesday, although the moves were relatively small.

France’s CAC 40 gained nearly 0.2% to 8,152.58 in AP’s early-market snapshot.

Germany’s DAX rose 0.1% to 25,609.14.

Britain’s FTSE 100 added nearly 0.1% to 10,746.70.

The muted gains contrasted with Monday’s much larger U.S. technology rally but were consistent with a broader improvement in investor sentiment.

Europe continues to face additional challenges, including fiscal concerns in France.

Reuters reported Tuesday that the premium investors demand to hold French 10-year government debt instead of German bonds rose above 100 basis points during the past week for the first time in more than a decade.

The cost of insuring French sovereign debt against default through credit-default swaps also reached its highest level in six years.

Those concerns remain another source of uncertainty for European markets even as falling oil prices provide some economic relief.

Global Markets – What Overseas Trading Means for Wall Street

The overall signal from overseas markets Tuesday morning is more positive than it was during last week’s period of rising oil prices and Treasury yields.

Asian equities were mostly higher.

European stocks opened with modest gains.

The Nasdaq reached a record Monday as artificial intelligence and semiconductor companies rallied.

The 10-year Treasury yield fell below 5%.

And Brent crude subsequently dropped below $100 Tuesday, reaching its lowest level in two weeks.

Those developments collectively reduce some of the pressures that recently weighed on global equities.

But they do not eliminate the underlying risks.

The Strait of Hormuz remains disrupted. Iran has proposed reopening the waterway under specific conditions, but no agreement has been announced. Oil remains substantially above its early-summer price, and refined fuel markets remain under pressure.

Geopolitical developments can also shift market sentiment quickly.

For investors watching Tuesday’s U.S. session, three indicators remain particularly important: Brent crude, the 10-year Treasury yield and technology stocks.

Further declines in oil accompanied by stable or falling Treasury yields would remove two important headwinds for equities.

A renewed escalation in the Middle East could quickly reverse that environment.

For now, however, the verified overnight picture shows global markets moving cautiously higher as investors respond to lower crude prices, easing bond yields and renewed enthusiasm for artificial intelligence stocks.

The shift represents an improvement in market conditions compared with last week’s volatility, but the rally’s durability will depend heavily on whether energy prices continue to fall and whether geopolitical tensions around the Strait of Hormuz ease.

Read our news article about yesterday’s closing high, titled “Stock Market Today: Nasdaq Hits Record as Oil Falls – Sept. 21.”

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Disclaimer: This article is for news and informational purposes only and is not investment advice. Market prices and index levels change continuously during trading.