The Nasdaq Composite reached a fresh all-time high on Monday as technology stocks advanced despite rising US Treasury yields and investors assessed new economic data.
Gains in major technology and artificial intelligence-related stocks helped lift the index, while traders also looked ahead to the Federal Reserve’s September meeting minutes and the start of third-quarter earnings season.
The Nasdaq gained 1.05% to reach an intraday record of 27,544.07, while the S&P 500 rose about 0.7%.
The Dow Jones Industrial Average added around 90 points, or nearly 0.2%.
AI stocks lead Nasdaq higher
Stocks linked to the artificial intelligence trade led the gains.
SpaceX jumped nearly 6%, while Meta and Microsoft gained more than 2% and 1%, respectively. Nvidia rose more than 1%, and Tesla advanced 2%.
The technology sector continued to attract investors even as Treasury yields moved higher. The 10-year Treasury yield rose more than nine basis points to 5.349%, while the 30-year yield increased about seven basis points to 5.703%.
Both yields have climbed to multiyear highs in recent weeks as investors have assessed the possibility that inflation could keep the Federal Reserve’s interest rates higher for longer.
The latest market moves came as investors reviewed the Institute for Supply Management’s services-sector report.
The services Purchasing Managers’ Index rose to 54.9 in September, broadly matching expectations but coming in slightly below the previous month’s reading.
Investors are now awaiting the minutes from the Federal Reserve’s September meeting, which could provide further insight into the central bank’s decision to raise interest rates by 25 basis points last month.
Lower oil prices provide support
Oil prices declined on Monday as investors assessed an improvement in Middle Eastern crude exports and commitments from the Group of Seven to increase supplies.
Brent crude futures fell more than 1.9% to $100.30 a barrel, while West Texas Intermediate crude declined about 2% to $89.29.
The move in oil prices provided another factor supporting investor sentiment after a week marked by rising Treasury yields and weaker-than-expected US employment data.
The September jobs report showed that US job growth slowed more than expected, reducing market expectations for another Federal Reserve rate hike in October.
Traders were pricing in a 24% probability of an October rate increase, down from 70% a week earlier, according to CME’s FedWatch tool.
Earnings season moves into focus
Investors are also turning their attention to the upcoming third-quarter earnings season, which begins next week with results from major US banks.
LSEG data showed analysts expect S&P 500 earnings to increase more than 30% year over year, driven largely by artificial intelligence-related companies.
The Nasdaq’s previous record closing high was set on September 22.
Elsewhere, PTC surged after Schneider Electric agreed to acquire the software company in a $22.6 billion all-cash transaction.
RXO also advanced after C.H. Robinson Worldwide agreed to acquire the transportation broker in a $5.8 billion stock-and-cash deal.
Cerebras Systems gained after OpenAI CEO Sam Altman described the chip designer as a close partner and said the companies had extensive work underway focused on improving speed.