NEW YORK – September 21, 2026 (STL.News) Nasdaq – U.S. stocks rallied Monday as falling oil prices and lower Treasury yields eased two pressures that have recently weighed on Wall Street, while renewed enthusiasm for artificial intelligence sent semiconductor stocks sharply higher and pushed the Nasdaq Composite to a record close.
The S&P 500 climbed 114.20 points, or 1.49%, to 7,764.70, finishing about 0.4% below its Aug. 13 record close.
The Dow Jones Industrial Average gained 366.19 points, or 0.71%, to 52,048.83.
Technology stocks led the market. The Nasdaq Composite surged 599.55 points, or 2.26%, to 27,122.09, setting a record closing high and posting its first record close since June 2.
The Russell 2000, which tracks smaller U.S. companies, gained 14.96 points, or 0.52%, to 2,875.36.
The day’s advance was driven by lower energy prices, retreating bond yields, and substantial gains in some of the country’s largest technology and semiconductor companies.
Stock Market Today: Major Indexes
| Index | Close | Point Change | Change |
|---|---|---|---|
| S&P 500 | 7,764.70 | +114.20 | +1.49% |
| Dow Jones | 52,048.83 | +366.19 | +0.71% |
| Nasdaq Composite | 27,122.09 | +599.55 | +2.26% |
| Russell 2000 | 2,875.36 | +14.96 | +0.52% |
The rally returned the S&P 500 to within striking distance of its all-time high while pushing the Nasdaq into new territory.
The Nasdaq’s record was particularly notable because technology shares have recently faced two significant pressures: questions about artificial-intelligence valuations and a sharp rise in Treasury yields.
Both pressures eased Monday.
Oil Prices Retreat Toward $100
Oil was one of the most important influences on Monday’s stock market.
Brent crude futures briefly dropped below $100 per barrel and reached their lowest level since Sept. 9 before settling at $100.34 per barrel, Reuters reported.
The retreat mattered to Wall Street because elevated energy prices have intensified concerns about inflation and the direction of Federal Reserve monetary policy.
Higher crude prices can eventually work their way through transportation, manufacturing and consumer prices. That can make the Federal Reserve’s effort to return inflation toward its 2% objective more difficult.
Monday brought at least temporary relief.
Oil prices declined amid speculation about possible diplomatic progress involving the Middle East as world leaders gather in New York for the United Nations General Assembly.
President Donald Trump said he would be open to meeting Iranian President Masoud Pezeshkian, Reuters reported. Pezeshkian is expected to attend the U.N. gathering this week.
That possibility helped markets consider whether geopolitical tensions affecting oil markets could eventually ease.
However, Monday’s decline does not mean the geopolitical or energy situation has been resolved. Brent crude remains around $100 per barrel, and developments in the Middle East can still move energy markets quickly.
For Monday’s trading session, though, lower oil prices removed one of Wall Street’s recent headwinds.
10-Year Treasury Yield Falls Below 5%
Stocks also received help from the bond market.
The benchmark 10-year U.S. Treasury yield fell below 5%, with the Associated Press reporting a decline to approximately 4.95%.
The 5% level has become more important for investors.
Higher Treasury yields can compete with stocks for investment capital because government bonds begin offering more attractive returns. Rising yields also raise financing costs and affect the discount rate investors use to value companies’ future earnings.
Technology and other growth companies can be especially sensitive to those changes because much of their expected value is based on profits anticipated years into the future.
That helps explain why Monday’s combination of falling oil and lower Treasury yields was particularly supportive of the Nasdaq.
Both conditions had recently worked against equities.
On Monday, both moved in Wall Street’s favor.
Semiconductor Stocks Lead Rally
Semiconductors were among the market’s strongest sectors.
The Philadelphia Semiconductor Index jumped 4.3%, Reuters reported.
Intel rose 12.2%, while Arm Holdings gained 17%.
Advanced Micro Devices rose approximately 10%, pushing AMD’s market capitalization to $1 trillion for the first time.
The semiconductor rally reflected renewed optimism about artificial-intelligence spending after concerns surrounding the AI sector contributed to recent market volatility.
AI-related companies have become increasingly influential in the U.S. stock market because expectations for data-center construction, computing infrastructure and AI applications have supported large increases in expected earnings for portions of the technology industry.
Reuters reported that investors pointed to indications that AI spending continues to expand despite recent warnings from industry leaders that contributed to a technology selloff.
Monday showed how quickly investors were willing to return to those companies once pressure from oil and Treasury yields subsided.
Meta Jumps More Than 11%
Meta Platforms was another major contributor to the rally.
Meta shares surged 11.4% after Wells Fargo increased its price target following the recent launch of Meta’s Muse AI assistant.
That helped push the S&P 500’s communication services sector up 4.16%, making it the strongest-performing major sector Monday.
Information technology rose 2.4%.
Those gains help explain why the Nasdaq substantially outperformed the Dow and Russell 2000.
The Nasdaq gained 2.26%, compared with 0.71% for the Dow and 0.52% for the Russell 2000.
Investors were clearly favoring technology and AI-related companies.
Rally Extended Beyond Technology
Although technology companies supplied much of Monday’s momentum, the session was broader than a rally in only a few mega-cap stocks.
Eight of the 11 S&P 500 sectors finished higher.
Advancing stocks within the S&P 500 outnumbered declining stocks by approximately 1.4 to 1, according to Reuters.
Trading volume was also relatively strong.
Approximately 16.5 billion shares traded on U.S. exchanges, compared with an average of 16.2 billion shares during the previous 20 trading sessions.
That suggests investors participated more broadly, even though technology remained the dominant market leader.
Uneven participation still showed up.
The Russell 2000’s 0.52% gain was considerably smaller than the Nasdaq’s advance, showing that the strongest buying remained concentrated in larger technology-oriented companies rather than small-cap stocks.
Fed Rate Hike Remains Important
The Federal Reserve remains another major factor influencing markets.
On Sept. 16, the Federal Open Market Committee voted unanimously to raise the federal funds target range by 25 basis points to 3.75% to 4%.
It was the Fed’s first rate increase since July 2023.
The Federal Reserve said economic activity continues to expand at a solid pace, domestic spending has remained resilient, productivity growth is strong, and capital investment remains robust.
However, the central bank also said inflation remains elevated.
The Fed said the rate increase was intended to support a more timely return to its 2% inflation objective.
That decision leaves Wall Street facing a critical question: Was September’s increase sufficient, or will the central bank raise rates again?
Reuters reported Monday that futures markets indicated roughly a 50% chance of another rate increase next month, according to CME FedWatch.
Comments from Federal Reserve officials will therefore be closely watched this week.
Reuters reported that at least 10 central bank policymakers are scheduled to speak.
S&P 500 Moves Close to Record
Monday’s rally brought the S&P 500 to about 0.4% below its Aug. 13 record close.
The index has now gained 13.4% in 2026, according to closing data compiled by the Associated Press.
The Nasdaq has risen 16.7% year to date.
The Dow is up 8.2%, while the Russell 2000 has advanced 15.9%.
Those gains have persisted despite substantial volatility involving inflation, interest rates, geopolitical developments and energy prices.
Valuation remains an important consideration.
Reuters reported that the S&P 500 traded at just under 19 times expected earnings Friday, based on LSEG data. That represented its lowest forward valuation since 2023.
AI-related companies remain responsible for much of the recent increase in expected corporate earnings.
Oil and Treasury Yields Remain Key Indicators
Monday’s trading clearly showed how interconnected the oil, bond, and stock markets have become.
Higher oil prices can increase inflation concerns.
Greater inflation pressure can increase expectations for tighter Federal Reserve monetary policy.
Those expectations can push Treasury yields higher.
Higher Treasury yields can then place pressure on equity valuations, particularly among high-growth technology companies.
On Monday, that process partially reversed.
Oil prices declined.
The 10-year Treasury yield moved back below 5%.
Technology and semiconductor stocks rallied.
The Nasdaq reached a record.
That does not establish that the recent pressures have disappeared. Oil remains elevated, the benchmark Treasury yield remains historically high compared with much of the post-financial-crisis period, and the Federal Reserve has just raised interest rates.
But Monday provided investors with meaningful relief from two variables that had recently been moving against equities.
What Wall Street Watches Next
Investors enter Tuesday with the Nasdaq at a record high and the S&P 500 only about 0.4% below its record close.
Oil will remain one of the most important indicators.
Further declines could reduce some inflation concerns and potentially ease pressure on bond yields. A renewed increase in crude prices could quickly reverse that dynamic.
Treasury yields are equally important.
Monday’s move below 5% helped technology stocks. A renewed move above that level could again challenge equity valuations.
The market will also closely follow Federal Reserve policymakers for indications about another possible interest-rate increase.
AI spending will remain another major theme after Monday’s semiconductor rally.
For now, Monday represented a strong risk-on session for Wall Street.
The Nasdaq reached a record close, the S&P 500 returned to within 0.4% of its record, semiconductor stocks posted substantial gains, eight of 11 S&P 500 sectors advanced, and overall market breadth was positive.
No single development drove the move.
Instead, Wall Street received a favorable combination: oil prices retreated, Treasury yields declined, and investors returned aggressively to AI and semiconductor stocks.
Whether those conditions persist will help determine whether Monday’s rally becomes another run at record highs or proves a temporary reprieve from the inflation, interest-rate, and geopolitical pressures that have driven recent volatility.
We published an article titled “Current State of the US Stock Market.”
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This article is for news and informational purposes only and is not investment advice.
