US Stocks Rise on Strong Services Activity and AI Earnings Hopes

The US stock market is experiencing a steady rise on Monday morning, with S&P 500 futures up about 0.4% and Nasdaq-100 futures gaining roughly 0.3%. This move comes as the 10-year government bond yield hovers near a 20-month high of around 4.74%, indicating elevated borrowing costs for mortgages, credit cards, and corporate debt.

The latest US PMI readings show services activity expanding comfortably while factory output lags, suggesting that everyday spending on travel and healthcare is holding up better than goods production. The key question now is whether higher long-term rates will start to impact rate-sensitive areas such as smaller companies and real estate.

Investors are shifting focus towards 75 resilient stocks with low risk scores in response to the rising yields, which are pressuring rate-sensitive stocks. Top movers include Robinhood Markets (HOOD), up 13.70% after investors focused on its crypto trading exposure; Moderna (MRNA), gaining 8.86% due to positive Phase 3 melanoma vaccine data and analyst upgrades; and Southern Copper (SCCO), rising 8.69% following fresh attention on its role in copper supply for AI and infrastructure themes.