In at 9:35 AM. Out by 10.

Markets gave traders a clean answer Monday: the Nasdaq Composite closed at 27,122.09, up 2.26% on the session and past its prior record of 27,093.90 set June 2. It was the index’s first record-high close since June 2, while the S&P 500 ended about 0.4% below its August 13 record-high close. The Dow added 366 points. Five sessions after the Federal Reserve restarted its hiking cycle, the market voted with size.

The question worth sitting with this morning is not what happened, it is which of the three props that lifted Monday’s session holds through the week.

The Three Supports

Yields off 5%. The benchmark 10-year yield fell to about 4.95% as oil prices eased back toward $100 a barrel. The 10-year had closed at 5.01% on September 18 after the Fed move rattled bond markets. One session of relief is not a trend. If yields re-approach 5% on this week’s data, the equity bid gets contested fast.

Oil sliding. Crude prices fell sharply, and Brent briefly dipped below $100 a barrel. That is a fragile catalyst. Any diplomatic setback flips oil higher, reignites inflation anxiety, and hands the bond market a reason to push the 10-year back above the level that spooked stocks last week.

The AI bid, led by Meta. This is the most durable of the three. Meta shares soared 11.4% after Wells Fargo hiked its price target on the company, with investors focused on usage stats and product updates tied to Meta’s Muse assistant ahead of Connect. Wells Fargo lifted its target to $796 from $640. Semiconductors piled on: Intel surged about 12%, Arm Holdings climbed about 17%, and the PHLX semiconductor index jumped about 4.3%. Advanced Micro Devices rose about 10% and briefly topped a $1 trillion market capitalization for the first time.

The Fed Context

The Fed unanimously raised the target range for the federal funds rate by 25 basis points to 3.75%-4.00% on September 16, 2026, marking the first rate hike since 2023. The dot plot delivered a follow-on punch: 16 of the 18 officials submitting forecasts penciled in at least one more hike this year, including four who projected two additional increases. Chair Kevin Warsh’s message was direct: “This summer’s inflation readings do not tell me that underlying trends have meaningfully improved.”

That is the ceiling pressing down on this rally. Art Hogan of B. Riley Wealth noted that oil and the 10-year had shifted from being headwinds to tailwinds for this market, at least in the near term, and that qualifier matters.

The Trading Plan

The highest-conviction opportunity sits in semiconductor names that participated Monday but have not yet repriced to reflect durable AI capital spending. AMD at $1 trillion market cap is now the position-sizing question, not the entry question. Intel’s 12% move deserves a retest watch: gap fills at that magnitude often come within two to three sessions.

Meta is the momentum leader, but Meta Connect runs September 23 to 24, both virtually and at Meta’s Menlo Park campus. That event is the first real test of whether Monday’s 11% move was front-running a genuine product cycle or front-running a press release. Meta’s next earnings date has not been formally confirmed, but Wall Street calendars generally point to late October for its Q3 report.

For the S&P 500, the 0.4% gap to its August record is not a gift, it is where sellers who missed the top will re-engage. Watch the 10-year yield daily. A close back above 4.95% changes the calculus on any long position added at Monday’s levels. Keep risk defined. The Nasdaq earned its record. Whether it can hold it depends on whether oil diplomacy holds and the bond market stays cooperative, neither of which is guaranteed by Wednesday.