Pre-Market Update: Nasdaq Reaches Record High as AI Sentiment and Oil Drop Lift Futures

TLDR

• Nasdaq hit its first record high since June on Monday, driven by AI optimism and falling oil prices
• Meta shares jumped 11% after its Muse AI agent app reached the top spot in the App Store
• Iran offered to reopen the Strait of Hormuz within seven days, sending oil prices sharply lower
• US-China trade talks were described as “very successful” by Treasury Secretary Scott Bessent
• One analyst cut her S&P 500 target to 7,800, warning that rising rates are a drag on stocks

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Wall Street is pointing higher on Tuesday after a strong Monday session that pushed the Nasdaq to a record high for the first time since June.

Stock futures are in positive territory across the board. Nasdaq 100 futures are up 0.2%, S&P 500 futures are slightly green, and Dow Jones futures have climbed around 106 points, or 0.2%.

The rally was fueled by two main stories: growing confidence around artificial intelligence and a drop in oil prices tied to potential progress in the Middle East.

AI Optimism Drives Tech Stocks Higher

Meta shares led the charge on Monday, jumping 11% after the company’s Muse AI agent app hit the number one spot in the Apple App Store. The move lifted the broader group of large tech companies 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, 2026

The strong performance in tech sent a positive signal about demand for AI chips. It also helped push the Nasdaq to its highest close since June.

The mood around AI was also helped by progress in US-China trade talks. Treasury Secretary Scott Bessent described preliminary meetings as “very successful,” with officials wrapping up talks ahead of a planned meeting between President Trump and Chinese leader Xi Jinping.

Cooperation on artificial intelligence was among the topics discussed, adding to the optimistic tone in markets.

The positive sentiment from Wall Street spilled over into Asian markets. Japan’s Nikkei and South Korea’s KOSPI both gained on Tuesday.

Oil Prices Fall on Iran Strait of Hormuz Report

Oil prices dropped sharply after reports surfaced that Iran is willing to reopen the Strait of Hormuz within seven days, provided the US takes steps to ease military pressure.

Brent crude fell below the key $100 level, dropping to around $99.75. West Texas Intermediate fell around 2% to $93.80. Oil had already been falling for four straight days heading into Tuesday.

A senior Iranian official told Japan’s Kyodo News that “there is a possibility of moving toward an agreement,” while adding that Washington must show “seriousness and commitment” for diplomacy to move forward.

Oil prices did bounce around early in the session as traders noted that fighting by Houthi rebels in Saudi Arabia had intensified, keeping some risk in the market.

Despite the positive tone, not everyone is optimistic about the stock market’s path from here. Emily Bowersock Hill, CEO of Bowersock Capital Partners, cut her S&P 500 target to 7,800, warning that rising interest rates are “a drag on stocks.”

The S&P 500 closed just under 7,765 on Monday. Treasury yields at current levels, she added, pose real competition to equities.

KB Home and AutoZone are set to report earnings on Tuesday in what is otherwise a quiet week for economic data.