US Stocks Near Record Highs on Tech Buyouts and AI Gains

U.S. stocks advanced on Monday, nearing their all-time highs, buoyed by major buyout announcements in the tech sector. The S&P 500 rose 0.7%, pulling within 0.3% of its record set earlier in the summer. The Dow Jones Industrial Average gained 90 points, or 0.2%, while the Nasdaq composite surged 1.1% to set a new record.

Software company PTC saw its shares jump 33.5% after Schneider Electric of France agreed to acquire it for $205 per share in a deal valued at about $22.6 billion. Meanwhile, RXO climbed 22.5% following news that C.H. Robinson Worldwide would buy the truck brokerage business for $30.25 per share. C.H. Robinson, however, dropped 10.8%, the largest decline in the S&P 500.

Both deals highlighted the potential of artificial-intelligence (AI) technology, driving gains across the AI sector. Nvidia, a key player in AI chip manufacturing, led the S&P 500 with a 2.1% rise, while Broadcom also climbed 2.1%. Analysts anticipate strong corporate earnings for the third quarter, with S&P 500 companies expected to show nearly 30% year-over-year profit growth, marking the third straight quarter of such growth.

Oil prices fluctuated due to uncertainty surrounding the Iran conflict, with Brent crude settling at $100.32 after earlier swinging between $100 and $103. The 10-year U.S. Treasury yield rose to 5.31%, nearing its highest level since 2002. High yields could slow economic growth by increasing borrowing costs and making investors wary of high stock valuations. A mixed report on U.S. services sector growth added to economic uncertainty, signaling faster inflation pressures.