Nasdaq Hits Record High on Tech and Software Deal Surge
The Nasdaq Composite reached a new record high, driven by strong gains in big tech and software deals. At 18:10 GMT, the index traded at 27,452.152, up 0.96%. Key contributors included Nvidia (+1%), Meta (+2%), Microsoft (+1%), and Tesla (+2%). The rally was also supported by a $22.6 billion cash deal for PTC, which surged over 30% after Schneider Electric agreed to acquire it for $205 per share.
The bond market remained a challenge, with the 10-year Treasury yield climbing to 5.341% and the 30-year yield to 5.699%. Despite these higher yields, traders continued to favor growth stocks, particularly AI-related companies. The focus shifted toward firms expected to benefit from AI software, security, and computing capacity, with Microsoft receiving a buy upgrade and Cerebras gaining after OpenAI's Sam Altman highlighted its partnership.
Other notable moves included RXO's 21.8% jump after a $5.8 billion acquisition deal, and gains in DraftKings (+7%) and Harley-Davidson (+10%) following analyst upgrades. Meanwhile, Brazilian stocks rose sharply after a close election result, with the iShares MSCI Brazil ETF up over 13%. The Nasdaq's record high was attributed to narrow rallies in megacaps and AI software names, despite persistent pressure from rising long-term yields.