Stocks Rally on Tech Strength and M&A Activity

US stock indexes closed higher on Monday, with the S&P 500 Index (SPY) rising +0.66%, the Dow Jones Industrial Average (DIA) up +0.18%, and the Nasdaq 100 Index (QQQ) gaining +0.87%. The S&P 500 reached a 1.5-month high, while the Nasdaq 100 hit a new record high, driven by strong performance from the Magnificent Seven technology stocks.

Key factors supporting the rally included major M&A activity, with Schneider Electric agreeing to acquire PTC Inc. for $22.6 billion and C.H. Robinson Worldwide purchasing RXO for $5.8 billion. Additionally, a -1% drop in WTI crude oil prices eased inflation expectations, boosting market sentiment.

Despite these gains, rising bond yields limited further stock advances. The 10-year T-note yield climbed to a 24-year high of 5.35%, closing at 5.31% after the September ISM services prices paid sub-index surged to a four-year high of 74.0, indicating persistent price pressures in the US services sector.

Overseas markets also saw gains, with the Euro Stoxx 50 up +0.06% and Japan's Nikkei-225 rallying +2.40% to a three-month high. China's markets were closed for the Golden Week holidays.