Stocks Near Record Highs Amid Oil Price Volatility and Mixed Economic Data

U.S. stocks showed modest gains on Monday, with the S&P 500 inching closer to its all-time high set during the summer. The index rose by 0.3%, while the Nasdaq composite climbed 0.5% and was on track to set a new record. In contrast, the Dow Jones Industrial Average dropped 135 points, or 0.3%.

Oil prices continued their volatile swing, with Brent crude fluctuating between $100 and $103 before settling at $101.94, down 0.3%. The uncertainty surrounding the war with Iran has kept oil markets unstable, impacting bond yields. The 10-year U.S. Treasury yield rose slightly to 5.29%, nearing its highest level since 2002. Higher yields can slow economic growth by increasing borrowing costs and reducing investor appetite for high-priced stocks.

A mixed report on the U.S. economy highlighted growth in services industries for the 27th consecutive month, though the expansion was weaker than expected. The Institute for Supply Management also noted faster growth in prices for materials and services, a potential signal of rising inflation. The Federal Reserve is anticipated to raise interest rates at least once by the end of the year to curb inflation.

Wall Street saw notable buyout activity, with RXO surging 22.5% after C.H. Robinson Worldwide announced a $30.25-per-share acquisition deal. C.H. Robinson, meanwhile, dropped 11.9%, the largest loss in the S&P 500. PTC soared 34.9% following a $205-per-share offer from Schneider Electric, valuing the software company at about $22.6 billion. Internationally, France’s CAC 40 fell 1.1% due to concerns over government debt, while Japan’s Nikkei 225 jumped 2.4% on strong technology stocks.