Global Stocks Climb as Inflation Worries Ease and Oil Prices Drop

Global stock markets advanced on Monday, with U.S. equities nearing all-time highs as deal announcements boosted investor confidence. The S&P 500 climbed 0.7%, pulling within 0.3% of its summer record, while the Nasdaq composite surged 1.1% to set its own record. The Dow Jones Industrial Average added 90 points, or 0.2%. The rally was led by PTC, which soared 33.5% after Schneider Electric of France agreed to acquire it for $22.6 billion. Other software stocks, including Autodesk, also gained.

Meanwhile, RXO jumped 22.5% after C.H. Robinson Worldwide announced plans to buy the truck brokerage business. The deal included a mention of artificial-intelligence technology, which also lifted broader AI-related stocks. Nvidia, a key player in AI, rose 2.1%, contributing significantly to the S&P 500’s gains. Broadcom also climbed 2.1%. Trading was relatively quiet ahead of the upcoming earnings season, with analysts forecasting nearly 30% year-over-year profit growth for S&P 500 companies.

The oil market saw volatility due to uncertainty surrounding the Iran conflict, with Brent crude settling at $100.32, down 1.9%. Rising oil prices have contributed to higher bond yields, with the 10-year U.S. Treasury yield reaching 5.31%. High yields can slow economic growth by increasing borrowing costs. The U.S. economy continues to show strength, driven by AI data center investments and consumer spending, though inflation remains a concern.

A report on Monday indicated mixed economic strength, with the services sector growing for a 27th consecutive month but at a slower pace than expected. Input prices for services businesses also rose faster, signaling potential inflationary pressures. Wall Street anticipates the Federal Reserve will raise interest rates at least once by year-end to curb inflation. Internationally, France’s CAC 40 fell 0.8%, while Japan’s Nikkei 225 jumped 2.4% on tech stock gains.