Wall Street Surges as Meta Leads AI Rally, Oil Prices Fall

Wall Street surged on Monday as investors returned to artificial intelligence stocks, while falling oil prices eased inflation concerns ahead of Chinese President Xi Jinping’s visit to Washington.

The Nasdaq Composite jumped 2.3% to a record close of 27,122.09, its first since June 2. The S&P 500 climbed 1.5% to 7,765.83, while the Dow Jones Industrial Average gained 0.7% to 52,050.26.

Technology and communication services led the rally, advancing 2.5% and 3.9%, respectively. Meta Platforms shares soared 11.4% after the company announced a transatlantic subsea cable connecting France and the U.S. Wells Fargo also raised its Meta price target to $796, citing progress in artificial intelligence.

Investors are now looking toward Meta Connect 2026, where the company is expected to highlight AI, smart glasses, virtual reality and its recently launched Muse AI assistant.

Other semiconductor and AI-linked stocks rallied sharply. Arm surged 17.2%, Intel gained 12.2%, and AMD climbed 10%, pushing its market capitalization above $1 trillion for the first time.

The gains came after a mixed week in which investors assessed the Federal Reserve’s first interest rate increase in more than three years. The Fed raised rates by 25 basis points last week as policymakers continued efforts to contain inflation.

Oil prices, meanwhile, retreated as supply concerns eased. Brent crude briefly dropped below $100 per barrel before trading around $100.24, down 3.5%. U.S. Central Command said more than 1 billion barrels of crude had moved through the Strait of Hormuz over recent months, helping reduce fears of severe supply disruptions.

Saudi oil exports have also recovered to slightly above 4 million barrels per day in September, according to Kpler, despite the shutdown of the kingdom’s East-West Pipeline.

Markets are now watching Xi’s U.S. visit and possible talks with President Donald Trump, including discussions involving Iran and global energy markets.

Warner Bros. Discovery was another major mover, jumping 10.8% after Paramount Skydance reached a settlement with California and 11 other states over its $110 billion Warner acquisition, removing a major obstacle to the media deal.