US stocks surge as AI chips rally and yields dip

Advanced Micro Devices became the latest chipmaker to breach a $1 trillion market value, sparking a sharp rise in U.S. equity indices on Monday. The S&P 500 added 113.72 points, or 1.49%, closing at 7,764.22, while the Nasdaq climbed 599.55 points, or 2.26%, to finish at 27,122.09. The Dow Jones Industrial Average gained 371.24 points, or 0.72%, ending at 52,053.88. Gains were led by AI‑focused names such as Intel and Arm Holdings, which both posted strong jumps. Treasury yields eased, with the benchmark 10‑year yield slipping below the 5 % psychological barrier. Brent crude futures fell below $100 a barrel, settling at $100.34, their lowest level in 11 days. Art Hogan, chief market strategist at B. Riley Wealth, said the shift in oil prices and yields turned former market headwinds into near‑term tailwinds. Meta shares rose after Wells Fargo raised its price target following the launch of the Muse AI assistant. The S&P 500 traded at just under 19 times expected earnings, its lowest multiple since 2023, reflecting rising earnings expectations from AI heavyweights. Traders assigned a 50 % probability to another Federal Reserve rate hike next month, according to CME FedWatch, after the Fed’s first increase in three years. US‑listed companies tied to Greenland, such as Greenland Mines and Greenland Energy, saw their stocks triple and more than double respectively, after diplomatic progress between the United States and Denmark. Bitcoin surged to a seven‑month high, boosting Coinbase and Strategy. Paramount Skydance fell after reaching a settlement over a $110 billion merger with Warner Bros Discovery that had been challenged by California and eleven other states.