Nasdaq Hits New Record as Tech Stocks Drive Wall Street Rally
U.S. stocks closed higher on Monday, October 5, 2026, with the Nasdaq Composite reaching a new record high. The index rose 1.06% to 27,480.28, driven by strong gains in major technology companies like Nvidia and Microsoft. The S&P 500 also advanced 0.67% to 7,774.22, coming within 0.3% of its all-time high, while the Dow Jones Industrial Average gained 0.18% to 51,274.32.
The market's rally extended Friday's gains, which were fueled by weaker-than-expected U.S. employment data. This reduced expectations of a Federal Reserve interest rate hike in October, with traders assigning only a 24% probability of such a move. Despite this, the 10-year Treasury yield climbed to 5.31%, reflecting ongoing concerns about inflation and economic growth.
Corporate dealmaking also provided a boost, with PTC shares surging 33.6% after Schneider Electric agreed to acquire the company for approximately $22.6 billion. Meanwhile, RXO jumped 22.8% following its acquisition by C.H. Robinson Worldwide in a $5.8 billion deal. These transactions added to the broader market strength, particularly in the technology and software sectors.
Looking ahead, investors are focusing on the upcoming earnings season, with major U.S. banks set to report third-quarter results next week. Analysts expect S&P 500 companies to post earnings growth of over 30% year-over-year, driven by AI-related companies. However, high expectations could increase the impact of any disappointing results.