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Domestic Market Rally Expected Today: US Gains, Softening Crude Boost Hopes.
- •US markets saw strong buying Monday, with Dow Jones, S&P 500, and Nasdaq Composite rising; Nasdaq hit a record high.
- •AI and semiconductor stocks surged, with Meta, AMD, Intel, and Arm seeing significant gains; AMD's market cap exceeded $1 trillion.
- •US 10-year Treasury yield fell below 5%, and Brent crude remained around $100 per barrel, providing market support.
- •Focus on US-Iran talks at UNGA and West Asia tensions; Red Sea shipping security remains a concern amid Houthi attacks.
- •Libya's Sharara oilfield production halved, creating new pressure on global oil supply.
Key Questions Answered
Strong buying was observed in US markets driven by falling crude oil prices, softening US bond yields, and heavy buying in AI-related stocks. Meta's new AI agent, Muse, secured the top free app spot on Apple's App Store, which boosted investor enthusiasm for chip and computing demand and sent tech stocks soaring.
Falling crude oil prices and softening US bond yields provided positive signals for equity markets. The US 10-year Treasury yield fell below 5% to approximately 4.95%, while Brent crude remained around $100 per barrel after continuous declines.
Production at Libya's Sharara oilfield more than halved to approximately 127,000 barrels per day after an armed group shut a valve on the pipeline leading to the Zawiya export terminal, creating uncertainty in global oil supply. Additionally, market participants are closely monitoring US-Iran events at the UN General Assembly and ongoing tensions in West Asia.
