US stocks advanced for a third consecutive session as Treasury yields retreated, briefly offsetting a challenging macroeconomic backdrop and fueling a renewed rally in technology shares. The S&P 500 climbed 1%, while the Nasdaq 100 jumped 2.3% to a three-month high, and the Dow Jones Industrial Average gained 0.5%.
Crude oil and refined product prices continued to pull back from this month’s highs amid signs that the GCC has stepped up diplomatic efforts to persuade Tehran to lift its blockade on fuel tankers. The resulting easing in energy prices helped reduce recent pressure on Treasury securities.
Lower funding costs improved the outlook for AI hyperscalers to maintain record levels of debt issuance, bolstering chipmakers and AI infrastructure stocks. Sentiment in the sector was further shaped by ongoing debates over AI safety risks. Shares of Intel, AMD, Seagate, Marvell, and Western Digital rose between 7% and 13%. Meta surged 8% following favorable market reception to its Muse AI agent. Banks also edged higher, supported by the decline in borrowing costs.
