Tech Reclaims Market Lead as Nasdaq Sets a Record

Technology stocks surged on Monday, September 21, lifting the Nasdaq Composite 2.3% to a record close. Meta Platforms jumped 11.4%, and chipmakers Intel and Arm gained 12% and 17%, respectively. The rally carried into Tuesday, when the Nasdaq added 0.5% to another record even as the Dow fell.

Ed Yardeni, president of Yardeni Research, said investors appear to believe artificial intelligence will endure and generate profits, rather than prove disastrous for the companies building it. His assessment, cited by The Wall Street Journal, captures a shift in sentiment after recent worries about AI’s risks weighed on technology shares.

Meta was the standout catalyst on Monday. Its new AI assistant, Muse, rose to the top of Apple’s App Store charts, drawing buyers back to a company whose spending on artificial intelligence has faced investor scrutiny. Meta’s shares gained 11.4%, according to The Wall Street Journal.

The gains spread beyond the biggest internet companies. Intel and Arm rallied alongside chipmakers, while the Nasdaq’s 2.3% rise outpaced the Dow’s 0.7% advance. The S&P 500 climbed 1.5%, bringing it within 0.4% of its record.

Lower oil prices and bond yields helped ease pressure on growth stocks. Brent crude retreated toward $100 a barrel, while the 10-year Treasury yield fell to 4.95% on Monday. Lower yields can make the future profits investors expect from fast-growing companies more attractive today.

Tuesday’s trading showed the rebound remained concentrated: the Nasdaq rose to a second record while the S&P 500 was nearly flat and the Dow lost 0.4%. Oil dipped below $98 during the session before settling at $99.25 a barrel, still well above its level before the war with Iran began.

The rally makes investor expectations for AI central again. The next test is whether adoption and business results can support the enthusiasm, especially as elevated energy costs and geopolitical uncertainty remain in view.