The Nasdaq surged to a record close on Monday, lifted by gains in artificial intelligence-related stocks and chipmakers, while retreating Treasury yields provided further support for equities.
The Nasdaq rose 2.26% to 27,122.09 points, marking its first record-high close since June 2. The S&P 500 gained 1.49% to 7,764.70, while the Dow Jones Industrial Average added 0.71% to 52,048.83.
Chip stocks led the rally, with Intel jumping 12.2% and Arm Holdings gaining 17%, while the PHLX semiconductor index climbed 4.3%.
Advanced Micro Devices rose about 10% to reach a US$1 trillion market capitalisation for the first time, making it the latest major chipmaker to reach the milestone.
Meta shares also surged 11.4% after Wells Fargo raised its price target on the social media company following the recent launch of its Muse AI assistant.
Investors pointed to continued growth in AI spending despite recent concerns over the technology sector. AI-related companies have also contributed significantly to rising earnings expectations for the S&P 500.
The US 10-year Treasury yield fell below 5%, while Brent crude futures declined below US$100 a barrel before settling at US$100.34, its lowest level since Sept 9.
Traders remained cautious over the interest-rate outlook after the US Federal Reserve raised rates last week for the first time in three years to combat inflation.
Markets were pricing in a 50% chance of another Fed rate hike next month, according to the CME FedWatch tool, while comments from at least 10 central bank policymakers are due this week.
Eight of the 11 S&P 500 sector indexes ended higher, led by communication services with a 4.16% gain, followed by information technology at 2.4%.
Trading volume across US exchanges reached 16.5 billion shares, above the 20-session average of 16.2 billion shares.
