New York: U.S. technology stocks rallied sharply on Monday as growing enthusiasm around artificial intelligence pushed the Nasdaq Composite to a record close. Meta Platforms led the gains, with its shares surging 11.4% following strong investor interest in its newly launched AI assistant, Muse.
The Nasdaq climbed 2.26% to 27,122.09, marking a new record, while the S&P 500 gained 1.49%. The broader rally was supported by renewed optimism around AI-related investments as investors assessed the potential for AI products to generate new sources of revenue.
Meta’s Muse has emerged as a key focus for investors. Launched in the U.S. earlier this month, the AI agent is designed to handle multi-step tasks such as completing forms, booking travel and sending emails. Its early adoption has strengthened attention on Meta’s efforts to turn consumer-facing AI into a commercially viable business.
The optimism extended across the technology sector. AMD gained about 10%, reaching a $1 trillion market valuation for the first time, while Intel and Arm also recorded significant gains.
The market movement highlights a broader shift in the AI race: investors are increasingly watching not only the development of powerful models, but also whether AI agents can become widely used products and sustainable revenue generators.
However, the rally came amid other market factors as well. Falling oil prices and a decline in U.S. Treasury yields provided additional support for technology stocks during Monday’s session.