S&P 500, Nasdaq Hit Records on AI Stocks and Falling Oil

US equity indexes climbed to fresh highs Monday as enthusiasm for artificial intelligence applications outweighed concerns over energy costs. The S&P 500 and Nasdaq Composite both closed at record levels, with gains concentrated in technology names tied to AI development. Meta Platforms rose more than 11 percent after its Muse AI agent reached the top of the App Store rankings, while Advanced Micro Devices advanced nearly 10 percent to join the group of chipmakers valued above $1 trillion.

Market participants linked the moves to two concrete developments. Treasury Secretary Scott Bessent described preliminary US-China talks on technology cooperation as very successful ahead of a planned meeting between President Trump and Chinese leader Xi Jinping. At the same time, Brent crude fell more than 2 percent and West Texas Intermediate dropped 3 percent after reports that Iran might reopen the Strait of Hormuz within a week if the United States eases military pressure. Lower energy prices reduced input-cost worries for data-center operators that power large AI models.

Futures on the Nasdaq-100 opened Tuesday 0.1 percent higher and Dow Jones Industrial Average futures rose 0.3 percent, extending the prior session’s advance. Asian indexes followed, with South Korean and Taiwanese technology shares posting gains. Earnings reports from KB Home and AutoZone were scheduled for later in a relatively quiet week for economic data.

The same factors that lifted US indexes also shaped trading elsewhere. A Reuters dispatch noted that global chip stocks climbed after Meta’s results and that oil-price relief helped sentiment in markets sensitive to energy costs. No major Federal Reserve speakers altered rate expectations during the session, leaving the immediate drivers centered on AI product adoption and commodity prices.