Nasdaq Closes at Record High on AI, Chip Rally; AMD Tops $1 Trillion in Market Value

The Nasdaq closed at a record high, powered by gains in artificial intelligence and semiconductor stocks.

Reuters reported that the Nasdaq rose 2.26% from the previous session to 27,122.09 on Sept. 21, marking its first record close since June 2.

The S&P 500 climbed 1.49% to 7,764.70, leaving it about 0.4% below its record close set on Aug. 13. The Dow Jones Industrial Average gained 0.71% to end at 52,048.83.

AI and chip-related shares led the advance. AMD surged about 10%, lifting its market capitalization above $1 trillion for the first time. Intel jumped 12.2%, Arm Holdings rose 17%, and the Philadelphia Semiconductor Index added 4.3%.

Meta soared 11.4% after Wells Fargo raised its price target following the recent launch of the company's Muse AI assistant. Technology stocks had tumbled recently after executives at AI companies warned about safety risks, but investors turned their focus back to signs that AI-related spending continues to expand.

Falling oil prices and lower U.S. Treasury yields also supported stocks. The 10-year Treasury yield fell below 5%, a level seen as a psychological threshold. Brent crude dropped below $100 a barrel during the session, touching its lowest level since Sept. 9, before settling at $100.34.

Oil prices fell as hopes grew for easing tensions in the Middle East after U.S. President Donald Trump said he was open to a possible meeting with Iranian President Masoud Pezeshkian on the sidelines of the U.N. General Assembly in New York this week.

"Recently, the market has been highly sensitive to oil prices and the U.S. 10-year Treasury yield," Art Hogan, chief market strategist at B. Riley Wealth, said. "At least in the short term, those two factors have shifted from headwinds to tailwinds for the market."

Still, uncertainty over interest rates remains. After the Federal Reserve raised its benchmark rate last week for the first time in three years, markets are pricing in a 50% chance of another increase next month. At least 10 Fed officials are due to speak publicly this week.