Nasdaq Soars to All-Time High as Meta's AI Assistant Ignites a Market Frenzy

A New Record Built on Artificial Intelligence

The Nasdaq Composite rose 122.18 points, or 0.45%, to a record close of 27,244.28 on Tuesday, September 22 — its second consecutive record — after hitting a new all-time intraday high of 27,288.79, as the AI-agent rally sparked by Meta's Muse extended a six-day chip-stock winning streak. The milestone is a striking signal of just how powerfully artificial intelligence is reshaping investor confidence, even as serious risks swirl in the background.

Wall Street's Nasdaq shrugged off concerns about AI safety risks, sky-high tech valuations, and the energy shock caused by the United States' war on Iran. The Nasdaq 100, a narrower index tracking 100 top companies, jumped 0.82 percent, while the S&P 500 closed essentially flat. The divergence between the tech-heavy Nasdaq and the broader market underscores just how concentrated this rally has become — and how much is riding on the AI story holding together.

Meta's Muse: The Spark Behind the Surge

The catalyst for this week's rally was the rapid adoption of Meta's new autonomous AI agent, Muse, which reached the top of Apple's App Store free-app chart less than two weeks after launch. Meta shares surged nearly 12% on Monday, helped by a major Wall Street price-target upgrade, and the move revived optimism about the growth outlook for the broader AI trade.

Investors focused on the strong reception of Meta's AI assistant, which launched this month and can send emails and complete transactions on behalf of a user. Market participants viewed the agent as a clear consumer use case capable of justifying massive capital expenditures in artificial intelligence, with one analyst noting: "We have been searching for a clear consumer use case to justify the AI spend, and many see Muse as just that product." For months, skeptics had questioned whether the billions being poured into AI infrastructure would ever translate into real-world products people actually use. Muse appears to be answering that question — loudly.

Winners, Losers, and a Complicated Landscape

Chipmakers amplified the rally. Intel jumped 12% on Monday and Advanced Micro Devices rose about 10%, lifting AMD's market value to $1 trillion. Qualcomm gained more than 9%. Monolithic Power Systems and Canadian e-commerce company Shopify also led the gains, surging 8.1 percent and 7.1 percent, respectively.

But not everyone is celebrating. Investors are weighing how autonomous AI assistants could affect businesses that depend on consumers directly visiting their websites or platforms. Amazon blocked Muse from shopping on its platform, highlighting growing questions about how retailers and other companies will respond as AI agents increasingly act on behalf of individual users. Ride-hailing companies Uber Technologies and Lyft lost ground, while online travel company Expedia and financial services company Charles Schwab also fell.

Geopolitics Lurks, But Markets Press On

Oil prices were choppy near $100 a barrel, while the yield on the benchmark 10-year Treasury note hovered around 4.94% after U.S. President Donald Trump warned in a speech to the UN General Assembly that he could "annihilate the Islamic Republic" if no deal is reached to end the Middle East conflict. Geopolitical tensions showed signs of cooling, however, as Trump told reporters that American officials held a very good meeting with Iranian counterparts on the sidelines of the UN General Assembly in New York.

JPMorgan Chase CEO Jamie Dimon stated that AI investments centered on hyperscalers could grow from approximately $300 billion in 2025 to about $700 billion in 2026, reaching $1 trillion in 2027. That kind of capital commitment suggests the AI trade isn't a passing enthusiasm — it's a structural shift in where global money is flowing. Whether markets can sustain these record heights will depend heavily on whether products like Muse continue to deliver on the enormous promise investors are now pricing in.