US stock indices closed higher on Monday as Treasury yields eased, temporarily dampening concerns over an adverse macroeconomic backdrop, while technology stocks staged a fresh rally. The S&P 500 rose 1.5%, the Nasdaq gained 2.3% for a record close of 27,122, and the Dow added 366 points. President Trump said he would be open to meeting his Iranian counterpart, Masoud Pezeshkian, on the sidelines of the UN General Assembly. Meanwhile, observed Saudi oil loadings from inside the Persian Gulf jumped over the weekend. Crude oil and refined product prices eased further from their peaks this month, reducing recent pressure on bonds. Lower credit costs improved the outlook for AI hyperscalers to continue issuing record levels of debt, supporting chip producers and AI infrastructure stocks. Signs of success for Meta’s (+11.4%) new AI agent also sparked enthusiasm over chip demand. AMD soared 9.9%, closing above $1 trillion in market value for the first time, while Intel surged 12.1%.

Bitcoin topped $86K on Monday, extending the rally that began last week and reaching its highest level since January. The cryptocurrency was supported by improving overall market sentiment, continued declines in oil prices, progress on the regulatory front and renewed institutional inflows. The US Securities and Exchange Commission introduced a five-year exemption for platforms facilitating the trading of tokenised stocks and other securities using blockchain technology. This came despite the US Senate voting last week to block the Clarity Act from advancing. The legislation would establish a regulatory framework for digital assets. Meanwhile, traders are also focused on this week’s summit between US President Donald Trump and Chinese President Xi Jinping, with markets looking for signs of progress towards easing trade tensions. Demand for Bitcoin has also strengthened. US spot Bitcoin ETFs recorded $433 million in net inflows on September 18, led by Fidelity and BlackRock.

Gold prices edged lower toward $4,350 on Monday, pressured by a stronger US dollar and profit-taking after last week’s rally, while investors continued to monitor developments in the Middle East. Bullion reached its highest level in more than a week on Friday as falling oil prices eased concerns over prolonged inflationary pressures. Oil prices extended their decline at the start of the week as investors looked for signs of diplomatic progress on the Iran conflict around this week’s UN meetings, although tensions remained elevated as Iran and the US exchanged fresh threats on Sunday. Meanwhile, rate-hike expectations remain elevated, with traders pricing an 88% probability of a US rate increase in December, according to the CME FedWatch Tool. Last week, both the Federal Reserve and Bank of Japan raised interest rates and signaled further tightening, following a similar move by the ECB earlier this month.

The Chicago Fed National Activity Index in the US decreased to -0.04 in August 2026 from an upwardly revised +0.08 in July, suggesting economic growth decreased. Production-related indicators contributed -0.07, down from 0.00 in July. The sales, orders, and inventories category's contribution was 0.00 in August, down from +0.15 in July. On the other hand, employment-related indicators contributed +0.01, up from -0.01 in July. The personal consumption and housing category's contribution was +0.01 in August, up from -0.06 in July. The index's three-month moving average, CFNAI-MA3, increased to +0.01 in August from -0.01 in July.

The yield on the US 10-year Treasury note fell 4bps to 4.95% on Monday, as traders started the new week with another decline in oil prices, amid hopes that diplomatic efforts could lead to a resolution to the conflict with Iran. Oil prices have now fallen for four consecutive sessions, easing some concerns over renewed inflationary pressures. Hopes of easing geopolitical tensions, supported by the summit between President Trump and President Xi as well as this week’s UN General Assembly, also helped improve investor sentiment. Meanwhile, Chicago Fed President Goolsbee said he remains open to the possibility that inflation will resume its decline towards the 2% target, but warned that interest rates may need to rise if that fails to materialise. Several other Fed officials are scheduled to speak this week, with markets closely watching their comments for further clues on the outlook for monetary policy. Traders currently expect the Fed to deliver another 25bps rate hike this year.

Infrastructure output in India rose by 4.8% from the previous year in August of 2026, easing from the downwardly revised 5% growth rate in the earlier month, but remaining above the lower rates following the initial response from the war in the Middle East. Growth was carried by construction materials, with output remaining high for cement (12.5% vs 12.7% in July), steel (3.4% vs 1.9%), and iron ore (5.5% vs 29.5%). In turn, energy remained under pressure as the war triggered a surge in fuel prices and costs that Indian manufacturers face. Output fell for crude oil (-3.6% vs -5.3%), natural gas (-4.9% vs -3%), and slowed for refinery products (2.6% vs 3.0%). Soaring LNG prices faced by Asian importers also hampered production of fertilizers (-12.4% vs -8%).