Wall Street extended its gains as positive momentum carried into stock index futures amid continued demand for technology and artificial intelligence stocks. The Nasdaq Composite reached a new record high after rising 2.26%, while Nasdaq 100 futures gained 0.25% to 30,864 points. S&P 500 and Dow Jones futures remained broadly stable.
The technology sector remained one of the main drivers of the market after Meta shares jumped more than 11%, supported by growing interest in its Muse AI agent and anticipation ahead of the Meta Connect 2026 event. Semiconductor stocks also delivered strong gains, with the Philadelphia Semiconductor Index rising 4.3%, while AMD climbed around 10% and surpassed a market capitalization of $1 trillion for the first time.
At the same time, falling oil prices provided additional support to markets after Brent crude temporarily declined toward $100 per barrel. Lower energy prices eased some concerns over inflation and production costs, alongside an improvement in supply expectations and renewed discussion of possible diplomatic channels between the United States and Iran.
Despite continued geopolitical tensions in the Middle East, investors focused more closely on the impact of lower oil prices on inflation and monetary policy. A sustained decline in energy prices could reduce price pressures over the coming period, giving growth and technology stocks more room to maintain their gains.
The U.S. Treasury market showed some stability following the recent selloff, with the two year Treasury yield falling to 4.716%, while the ten year yield declined to 4.948%. Despite the pullback, markets continue to price in an extended monetary tightening cycle after the Federal Reserve raised interest rates for the first time in three years.
Interest rate futures indicate a higher probability of another 25 basis point increase at the October meeting, helping explain why short term yields remain elevated. Movements across the yield curve also reflect market expectations that the Federal Reserve will continue prioritizing inflation control even as the risks of slower economic growth increase.
This shift in interest rate expectations has been clearly reflected in the U.S. dollar, with the Dollar Index rising to 100.43, its highest level in nearly eight weeks. The U.S. currency continues to benefit from a widening yield advantage in favor of the United States, alongside expectations that monetary policy will remain restrictive over the coming period.
Among major currencies, the euro came under additional pressure as political risks resurfaced in Germany, while the Japanese yen remained weak despite the Bank of Japan raising interest rates to 1.25%, the highest level in 31 years. USD/JPY moved above 157 as speculation increased over possible intervention by Japanese authorities to support the currency.
Overall, markets are currently balancing strong support from the technology sector and falling oil prices against continued pressure from elevated interest rates and U.S. Treasury yields. Further gains on Wall Street will depend largely on whether technology stocks can maintain their current momentum and whether oil prices remain contained without triggering another wave of inflationary pressure.
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