Oil Hopes and AI Bets Lift Stocks, but Risks Remain

Markets opened Tuesday, September 22, on two hopeful bets: that Iran might ease the Strait of Hormuz standoff and that artificial intelligence could drive another wave of chip demand. Brent crude briefly fell below $98 a barrel, while investors carried Monday’s technology rally into the new session.

The Iran signal came with major conditions. A senior Iranian official told Reuters the country could reopen the strait within seven days if the United States eased military pressure and lifted its blockade on Iranian ports. That was an offer, not an agreement, leaving the route’s status unresolved.

The oil retreat followed Monday’s rally in global stocks. The Dow rose 0.7%, the Nasdaq gained 2.3%, and the 10-year Treasury yield fell to 4.95%, according to the Associated Press. Lower oil and bond yields eased some pressure on investors, while the S&P 500 finished close to its record.

A separate source of optimism was Meta’s Muse, a personal AI assistant launched September 8. Enthusiasm about its early traction helped lift Meta shares more than 11% on Monday, according to Reuters. Investors also bought chipmakers on hopes that AI agents could increase demand for processors.

AMD rose about 10% and passed a $1 trillion market value for the first time. Intel shares also climbed sharply. The gains showed how quickly investors are extending the AI trade beyond the companies that make specialized chips for training models.

But Muse faces practical limits. Amazon blocked the assistant from browsing and buying products on its platform, Axios reported, exposing a challenge for AI agents that need access to outside services to complete tasks. A popular app does not automatically translate into revenue or lasting control over online shopping.

Energy remained the market’s more immediate test. Oil near $98 was still expensive, and the price could turn higher if diplomacy stalls or shipping through Hormuz remains constrained. Investors were left weighing a possible easing in supply fears against a hopeful AI story whose commercial payoff is still unproven.