Nasdaq Notches New All-Time High as Oil Prices Slide on Iran Diplomacy Hopes

Wall Street extended its rally on Tuesday, September 22, with the Nasdaq Composite notching a new all-time high and the Dow Jones Industrial Average edging higher as oil prices fell sharply and AI and chip stocks continued to climb. The S&P 500 was little changed on the day, though the majority of its components advanced, and a closely watched chipmaker index rose for a sixth consecutive session, its longest winning streak since April.

Oil prices drove much of the session's mood, with Brent crude briefly slipping below $98 a barrel and U.S. crude falling below $93, both hitting their lowest levels since September 8. The declines, marking a fifth straight day of losses for crude, came after reports emerged that Iran was signaling a willingness to reopen the Strait of Hormuz and that Iranian President Pezeshkian would address the United Nations General Assembly and hold bilateral talks from September 22 through 26 on the sidelines of the event. Easing energy prices helped cool inflation concerns and left equities near record territory.

On the individual stock front, the session featured a wide array of movers. AutoZone and KB Home were scheduled to report earnings during the day, with analysts heading into AutoZone's report expecting mid-to-high single-digit revenue growth and low-double-digit earnings per share growth. American Airlines, Brinker International, Western Digital, On Holding, Peloton, Rocket Lab, Celanese, Butterfly Network, and Medline were also among the notable gainers. Netflix was a notable decliner. ARM Holdings rallied sharply on continued AI enthusiasm following Monday's surge, though some analysts cautioned investors not to overread the move.

The session came a day after a broad market surge on Monday, September 21, when the Nasdaq 100 recorded its best single day since early August, the Nasdaq Composite rose 2.2% to a new all-time closing high, the S&P 500 gained 1.5%, and the Dow added more than 360 points. That rally was itself powered by a wave of AI optimism and falling bond yields. The market breadth picture remained mixed, however, with only seven S&P 500 stocks hitting new highs the prior session while 30 touched 52-week lows.