US Stocks Near Records on Buyout Deals and Easing Inflation Fears

U.S. stocks advanced on Monday, nearing all-time highs as buyout deals and easing inflation concerns boosted investor sentiment. The S&P 500 gained 0.7%, pulling within 0.3% of its summer record, while the Nasdaq composite surged 1.1% to set a new high. The Dow Jones Industrial Average added 90 points, or 0.2%. Key drivers included PTC, which soared 33.5% after Schneider Electric announced a $22.6 billion acquisition, and RXO, which jumped 22.5% following a buyout by C.H. Robinson Worldwide.

Both deals highlighted the promise of artificial-intelligence technology, lifting AI-related stocks. Nvidia led the charge with a 2.1% gain, while Broadcom climbed 2.1%. Trading remained subdued ahead of the upcoming earnings season, with analysts predicting nearly 30% profit growth for S&P 500 companies, marking the third straight quarter of over 25% growth.

Meanwhile, oil prices fluctuated due to uncertainty over Iran’s war, settling at $100.32 per barrel. The 10-year U.S. Treasury yield rose to 5.31%, nearing its highest level since 2002, fueled by concerns over high oil prices and strong economic spending on AI data centers. A mixed report on U.S. services industries showed slower-than-expected growth but faster price increases for materials, raising inflation worries.

Globally, France’s CAC 40 fell 0.8% amid concerns over government debt, while Tokyo’s Nikkei 225 surged 2.4%, driven by technology stocks. The general expectation remains that the Federal Reserve will raise interest rates at least once by year-end to combat inflation.