Key HighlightsThe Nasdaq recorded its first all-time high since mid-2024 on Monday, propelled by artificial intelligence enthusiasm and declining crude oil valuesMeta’s stock price soared 11% following its Muse AI agent application climbing to number one on Apple’s App StoreReports suggest Iran may reopen the Strait of Hormuz within a week, triggering a significant drop in global oil pricesTreasury Secretary Scott Bessent characterized recent US-China trade negotiations as “very successful”Despite market strength, one prominent analyst reduced her S&P 500 forecast to 7,800, citing elevated interest rates as a concernEquity markets are positioned for further gains on Tuesday morning following Monday’s robust performance that delivered the Nasdaq’s first record close in over seven months.Stock futures are showing gains across major indices. Nasdaq 100 contracts have advanced 0.2%, S&P 500 futures are trading modestly higher, and Dow Jones Industrial Average futures have added approximately 106 points, representing a 0.2% increase.Nasdaq 100 Dec 26 (NQ=F)Monday’s market strength stemmed from two primary catalysts: mounting enthusiasm surrounding artificial intelligence applications and a retreat in energy prices connected to diplomatic developments in the Persian Gulf region.Meta Leads Technology Sector Rally on AI SuccessMeta platforms spearheaded Monday’s advance, with shares surging 11% after its Muse artificial intelligence assistant application claimed the top position in Apple’s App Store rankings. This performance provided momentum for the entire cohort of mega-cap technology firms collectively known as the Magnificent Seven.Muse is already the #1 app in the App Store just one week after launch.This is a perfect example of why $META installed base is such a moat because a great free product can turn into massive adoption almost immediately.Good thing they never started selling off all that excess… pic.twitter.com/MVt5lVuuoB— Shay Boloor (@StockSavvyShay) September 18, 2026The impressive showing among technology leaders reinforced bullish expectations regarding demand for artificial intelligence semiconductors. This momentum carried the Nasdaq composite to its strongest closing level since early June.Sentiment surrounding artificial intelligence received additional support from constructive developments in US-China commercial discussions. Treasury Secretary Scott Bessent characterized initial meetings as “very successful,” with negotiators concluding preliminary sessions in advance of an anticipated summit between President Trump and Chinese President Xi Jinping.Collaboration on artificial intelligence technology emerged as one of several subjects addressed during the discussions, contributing to the constructive market atmosphere.The favorable momentum from American exchanges extended into Asian trading sessions. Japan’s Nikkei index and South Korea’s KOSPI benchmark both recorded advances on Tuesday.Crude Markets Retreat Following Iran Diplomatic DevelopmentsOil prices experienced a substantial decline after emerging reports indicated Iran’s willingness to reopen the strategic Strait of Hormuz shipping channel within one week, contingent upon American efforts to reduce military tensions.Brent crude retreated below the psychologically significant $100 threshold, declining to approximately $99.75 per barrel. West Texas Intermediate dropped roughly 2% to $93.80. Energy markets had already experienced four consecutive sessions of losses entering Tuesday.A high-ranking Iranian representative informed Japan’s Kyodo News agency that “there is a possibility of moving toward an agreement,” while emphasizing that Washington must demonstrate “seriousness and commitment” for diplomatic progress to materialize.Crude prices experienced some volatility during early trading as market participants acknowledged escalating military actions by Houthi forces targeting Saudi Arabian territories, maintaining some geopolitical risk premium.Notwithstanding the optimistic market tone, cautious voices remain. Emily Bowersock Hill, Chief Executive Officer of Bowersock Capital Partners, lowered her S&P 500 price target to 7,800, cautioning that elevated interest rates represent “a drag on stocks.”The S&P 500 benchmark settled just below 7,765 on Monday. Current Treasury yield levels, she noted, present substantial competition for equity investments.KB Home and AutoZone are scheduled to announce quarterly results on Tuesday during an otherwise subdued period for macroeconomic data releases.The post Nasdaq Futures Rise as Tech Optimism and Middle East Oil News Drive Markets appeared first on Blockonomi.