Nasdaq Surges 2.5% as Brent Crude Drops Below $100 and Chip Stocks Lead Broad Rally

U.S. stocks climbed sharply on Monday, September 21, led by a renewed surge in technology and semiconductor shares as falling oil prices eased inflation fears and optimism built around an upcoming summit between President Trump and Chinese leader Xi Jinping. The Nasdaq 100 rose 2.5%, putting the S&P 500 on pace for its best single-day gain since early August, while the PHLX Semiconductor Index jumped more than 3%.

Chipmaker AMD soared to an all-time high above $610 a share, briefly giving the company a $1 trillion market cap during the session. The rally in AI-linked names drew additional fuel from news that U.S. Treasury Secretary Scott Bessent had met with China's Vice Premier He Lifeng for several hours ahead of the Trump-Xi state dinner, with the U.S. side proposing a new AI safety notification mechanism as part of the negotiations.

Brent crude sank below $100 a barrel, falling for a fourth consecutive session on hopes that diplomatic efforts could ease the conflict in Iran and reduce supply disruptions. The drop in oil prices pulled Treasury 10-year yields below 5%, with traders modestly trimming bets on further Federal Reserve rate hikes. Communication services stocks joined technology as the session's standout gainers. Bitcoin also broke above $86,000 for the first time in eight months, with MicroStrategy rising as much as 8% after a $300 million short squeeze.