New York, Sep 22: Wall Street started the week on a stronger footing as falling oil prices and easing Treasury yields helped investors regain confidence. Technology stocks led the recovery, pushing the Nasdaq Composite to a fresh closing high for the first time in nearly four months.
The S&P 500 rose 1.49 per cent to 7,764.70, while the Nasdaq Composite jumped 2.26 per cent to 27,122.09. The Dow Jones Industrial Average gained 0.71 per cent to 52,048.83.
The broad-based gains came after a difficult week for US equities, with investors closely watching energy prices, interest rates and the wider economic outlook.
Oil’s sharp fall brings some relief
One of the biggest positives for markets was the steep decline in crude prices. WTI crude futures dropped about 5 per cent, extending their fall below the $100-a-barrel mark.
The move offered some relief to investors concerned about inflation and rising costs. Lower energy prices can reduce expenses for businesses and households, while also easing some of the pressure that higher fuel costs can place on the broader economy.
For equity markets, the decline in oil prices provided a welcome shift in sentiment after energy costs had remained a key source of concern.
Treasury yields move back below 5%
Bond markets also provided support. The yield on the 10-year US Treasury fell to around 4.95 per cent, slipping below the closely watched 5 per cent threshold.
Lower yields can make equities relatively more attractive and can particularly benefit technology and other growth-oriented companies, whose valuations are often more sensitive to changes in borrowing costs.
With no major economic data releases driving trading on Monday, movements in oil and bond markets became important signals for investors.
Technology stocks take the lead
The Nasdaq’s 2.26 per cent rise stood out, reflecting renewed demand for technology and growth stocks.
The move also helped offset some of the weakness seen in the previous week. The Dow had lost 1.7 per cent, its worst weekly performance since March, while the S&P 500 slipped about 0.1 per cent. The Nasdaq, meanwhile, had gained around 0.7 per cent.
The Dow has since found support near its three-month low, helping the broader US market regain some stability.
Investors look for clearer signals
Monday’s rally highlights how closely Wall Street remains tied to movements in crude oil and Treasury yields. Investors are balancing hopes for easing cost pressures with continued uncertainty around interest rates and the economic outlook.
For now, the decline in oil prices and the retreat in Treasury yields have given US equities some breathing room. The Nasdaq’s fresh closing high also shows that technology stocks remain an important source of momentum, while the wider market continues to watch inflation, yields and energy prices for the next direction.
