Morning Bid: As oil swoons, AI recharges

By Mike Dolan

Tue, September 22, 2026 at 3:39 AM PDT 4 min read

By Mike Dolan

Sept 22 (Reuters) - The combination of a buzzy reception for Meta's new AI assistant Muse and softer oil prices was enough to give stocks a lift to start the week, with Mark Zuckerberg's firm surging more than 11% on demand for its new agent ‌on Monday.

The broader AI stock universe, which has been wavering all month over apocalyptic AI disaster warnings, lapped it up too. Global chip stocks ‌climbed anew, with US chipmaker AMD becoming the latest trillion-dollar-valued stock and Asia's tech stocks rising yet again on Tuesday.

Beyond the latest AI stock rally, much now spins into Thursday's summit between President Trump ​and China's Xi Jinping. AI risks are likely to top the agenda, which will also focus on a potential trade truce extension and geopolitical flashpoints like Taiwan and the Iran war.

What's more, the flurry of leaders' meetings at the UN General Assembly this week could see Trump meet with Iranian President Masoud Pezeshkian - according to Trump, at least.

Hopes of diplomatic progress on that front helped Monday's general retreat in crude prices. Brent slipped below $100 per barrel on Tuesday after a report from Kyodo News that Iran had offered ‌to reopen the Strait of Hormuz within seven days ⁠if the US takes initial steps to ease military pressure. Saudi Arabia also restarted operations at its East-West Pipeline, sources said.

Elsewhere in geopolitics, Trump on Sunday pressured Ukrainian President Volodymyr Zelenskiy to cease strikes on Russian oil refineries - although that did not seem ⁠to come with an equivalent demand that Moscow stop hitting Ukraine's energy infrastructure. The two will meet in New York this week.

Debt tensions in Europe centered on France again, with French debt underperforming at an already nervy time for sovereign bond markets, owing to growing doubts about a budget agreement there and the backdrop of next year's presidential elections.

The French 10-year ​borrowing ​premium over Germany has risen above 100 basis points over the past week for the first ​time in more than a decade. Meantime, credit default swap ‌insurance costs on French government debt rose to the highest in six years.

Back on Wall Street, Fed speakers continued to send hawkish signals, with Chicago Fed boss Austan Goolsbee being the latest to point out that services and demand-driven inflation were just as much a problem as elevated energy prices.

Chart of the day

Advanced Micro Devices surged almost 10% on Monday to become the latest chipmaker to reach $1 trillion in market valuation.