NEW YORK – Wall Street ended higher on Sept 25, lifted by Microsoft and other AI-related technology stocks, while high oil prices and a recent surge in US Treasury yields kept investors on edge.
Gains in the S&P 500 and Nasdaq capped a volatile week driven by uncertainty about what industries will win and lose from artificial intelligence, and by concerns about the US war with Iran and a surge in US Treasury yields.
Microsoft rallied 3.7 per cent, lifting its 2026 gain to 7 per cent, after the software giant unveiled several new capabilities in its Copilot app, including a coding tool and an always-on AI agent.
Chip maker Qualcomm gained 4 per cent and Dell advanced 5 per cent.
Akamai Technologies rallied 3.2 per cent after an US$11.6 billion cloud services deal with AI leader Anthropic. The deal includes a warrant that could give Anthropic up to 5 per cent of Akamai.
“That’s a positive from the standpoint that people are still investing, deals are still being done,” said Thomas Martin, senior portfolio manager at Globalt Investments in Atlanta. “It’s another circular deal, so OK… but Akamai stock is up.”
Meta Platforms dipped 3.3 per cent. The social media company’s stock soared about 13 per cent this week amid a strong reception to its Muse AI agent, which analysts say could benefit tech infrastructure stocks, while challenging banks, online shopping platforms and other consumer businesses.
The S&P 500 climbed 0.51 per cent to end the session at 7,743.41 points.
The Nasdaq gained 0.48 per cent to 27,068.72 points, while the Dow Jones Industrial Average rose 0.93 per cent to 51,828.62 points.
Seven of the 11 S&P 500 sector indexes rose, led by information technology, up 0.91 per cent, followed by a 0.6 per cent gain in industrials.
The S&P 500 gained 1.2 per cent for the week, while the Nasdaq rose 2 per cent for the week after it notched a record-high close on Sept 22.
The S&P 500 this week has traded just under 19 times expected earnings, its lowest valuation since 2023, according to LSEG data. AI-related heavyweights are responsible for much of the recent increase in earnings expectations.
A report that US and Iranian negotiators continued to explore a phased path out of the war, which would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade, helped market sentiment.
Data also showed strong AI-related capital expenditures boosted demand for key manufactured capital goods, outpacing expectations in August.
Brent crude eased but remained above US$100 a barrel. The yield on the benchmark US 10-year Treasury note hit a fresh 19-year high and was last up 3.4 basis points at 5.196 per cent.
Traders see a 66 per cent chance of the Federal Reserve increasing interest rates by at least 25 basis points in October, up from around 50 per cent earlier this week, the CME Group’s FedWatch Tool showed.
US President Donald Trump said he had a “very productive meeting” with President Xi Jinping, following a three-day summit that showcased personal diplomacy rather than big breakthroughs in economic relations.
Magazine publisher People Inc jumped 11 per cent after a report said MGM Resorts International was discussing a bid for the company.
Volume on US exchanges was relatively light, with 14.9 billion shares traded, compared with an average of 16.8 billion shares over the previous 20 sessions.
Advancing issues outnumbered falling ones within the S&P 500 by a 1.9-to-one ratio.
The S&P 500 posted three new highs and 31 new lows; the Nasdaq recorded 54 new highs and 175 new lows. REUTERS
