Nasdaq Posts Record Close as Tech Stocks Rally; Markets Recover from Weak Week
U.S. stock markets surged on Monday, September 21, with the tech-heavy Nasdaq Composite reaching a new record close for the first time since June, driven by gains in AI-related stocks and falling oil prices amid improving U.S.-China relations.
Market Rally Fuels Investor Confidence
The Nasdaq Composite posted a new record close on Monday, with the tech-heavy Nasdaq jumping 2.26% to 27,122.09, while the S&P 500 gained 1.49% to 7,764.70, and the Dow Jones Industrial Average added 366.19 points, or 0.71%, to 52,048.83.
Drivers of the Recovery
Crypto benefited from markets digesting the Fed's rate hike and broader risk appetite supported by falling oil prices and improving U.S.-China relations. The broader market was supported by a rise in artificial intelligence-related stocks. The move was amplified by a cascade of short covering, with more than $300 million in short bitcoin positions liquidated over the past 24 hours.
Greenland Security Deal Sparks Energy Stock Surge
Shares of Greenland-linked U.S. stocks jumped in premarket trading after U.S. President Donald Trump announced a security deal regarding the Arctic island. Shares of Greenland Energy soared more than 144% during premarket trading, with Greenland Mines seen up nearly 70% and Critical Metals Corp more than 30% higher.
Context: Fed's Recent Actions
The Federal Reserve raised its benchmark interest rate by 25 basis points to a target range of 3.75%-4%, its first increase since 2023. The rate hike, approved unanimously by the FOMC just days prior, reflects the central bank's response to persistent inflation pressures. As of Monday, September 21, 2026 at 8:01 PM EST, futures markets are pricing an increase to about 4.2% by December. The next policy meeting is scheduled for October 27-28, when officials will assess persistent inflation and continued economic resilience.