Stocks Surge on Easing Oil Prices and Bond Yields, S&P 500 Near Record High

U.S. stocks rose on Monday as oil prices and bond yields eased, causing concerns about inflation to recede. The S&P 500 index climbed 1% and is now within 0.9% of its all-time high set last month.

The Dow Jones Industrial Average increased by 193 points, or 0.4%, while the Nasdaq composite rose 1.6%. Brent oil prices fell 3.4% to $100.29, down from nearly $110 last week but still above the roughly $72 price seen earlier this summer.

Michael Wilson of Morgan Stanley warned that another leg higher in oil prices could hinder the U.S. stock market's growth. The average price for a gallon of regular gasoline across the United States has already climbed to nearly $4.48, up from less than $4.32 just a week earlier and from $3.18 a year ago.

The yield on the 10-year Treasury eased to 4.96% from 5.01% late Friday after crossing above the 5% threshold last week for the first time in three years. The easing of oil prices and bond yields helped reduce pressure on the economy, which is sensitive to high yields that make borrowing more expensive.

U.S. Treasury Secretary Scott Bessent said talks with China were 'very successful,' touching on trade and AI. Chinese President Xi Jinping is set to visit the United States between September 23 and 25, with experts expecting discussions on trade, tariffs, and AI safety.