Nvidia's Surge Propels Nasdaq to Record High
The Nasdaq Composite closed at a record high on Monday, driven largely by a surge in Nvidia's stock. The index climbed 1.1% to 27,477.31, marking its first record close since Sept. 22. Nvidia's stock rose 2.1%, pushing its market value to $5.76 trillion. Microsoft also saw gains, increasing by 1.5%.
The broader market rally included the S&P 500, which rose 0.7% and came close to its own record, while the Dow Jones Industrial Average added 0.2% to 51,267.90. Meta Platforms and Tesla each gained about 2%. The rally was fueled by fading expectations of an October Federal Reserve rate hike, with traders now seeing only a 20% to 24% chance of such a move, down from about 70% a week earlier.
The positive market sentiment followed a weaker-than-expected jobs report, which showed U.S. employers added just 29,000 jobs in September. Analysts had anticipated 90,000 new jobs. The softer labor data contributed to the shift in Fed rate hike expectations. Analysts also noted that investors were looking for any positive signs during a light week for economic data.
Bitcoin's price remained near $86,000, having briefly approached $87,000 earlier in the day. The cryptocurrency has struggled to hold above that level since the jobs report. Meanwhile, bond yields continued to weigh on markets, with the 10-year Treasury yield climbing to 5.31%, near its highest level since 2002.