Nasdaq Hits Record High as Tech Stocks Lead Market Rally
The S&P 500 climbed higher on Monday, while the Nasdaq reached new record highs as megacap tech stocks led the charge. Nvidia rose 1.1%, hovering near its previous record high, while Meta Platforms, Microsoft, and Tesla each gained over 1%. Seven of the 11 S&P 500 sectors saw gains, with communication services and utilities leading the way.
Software-related companies were among the top performers, with the S&P 500 software & services index rising 1.4%. PTC surged 34.6% after Schneider Electric agreed to acquire the firm for $22.6 billion in cash. Meanwhile, chip stocks faced early declines, with the Philadelphia chips index down 0.3%.
By 10:19 a.m. ET, the Dow Jones Industrial Average fell 66.35 points, or 0.13%, to 51,110.61, while the S&P 500 gained 30.33 points, or 0.39%, to 7,753.05, and the Nasdaq Composite added 167.85 points, or 0.62%, to 27,360.28.
Optimism about corporate earnings has boosted U.S. stocks over the past six months, despite geopolitical tensions and inflation concerns. Goldman Sachs analysts expect companies to surpass earnings estimates this quarter, with a 9% year-on-year growth for the median S&P 500 stock. Peter Andersen of Andersen Capital Management noted that the market may continue to push through further interest rate increases.
Risk sentiment remained subdued as Treasury yields held near multi-year highs, with the 10-year U.S. Treasury yield at 5.296%. Concerns over government finances, debt issuance, and energy costs kept global bond markets in focus. The Nasdaq’s record high followed last week’s jump after softer-than-expected jobs data reduced the likelihood of an October interest rate hike.
Other notable movers included RXO, which advanced 22.5% after C.H. Robinson Worldwide agreed to acquire the transportation broker for $5.8 billion. C.H. Robinson fell 11.8%. Cerebras Systems rose 9.5% after OpenAI CEO Sam Altman highlighted the company as a close partner. Brent crude futures hovered near $100 a barrel amid concerns over Gulf oil infrastructure disruptions.