Tech Stocks Drive Market Gains as Nasdaq Hits Record High

Technology stocks continued to drive market gains at the start of the week, with soaring demand for artificial intelligence (AI) fueling strong performances from key players. Nvidia Corp. (NVDA) and Broadcom Inc. (AVGO) each rose more than 2% at Monday’s close, while Meta Platforms Inc. (META) and Microsoft Corp. (MSFT) gained over 1% each. SpaceX (SPCX) saw an impressive surge of over 7%, fueled by optimism around its first orbital Starship flight and long-term AI ambitions.

U.S. stock futures also edged higher in overnight trading, following the Nasdaq Composite’s record high during regular trading hours. The Nasdaq led the gains, closing 1.05% higher, while the Dow Jones Industrial Average and S&P 500 rose 0.18% and 0.66%, respectively. Investors remain focused on the U.S. Federal Open Market Committee (FOMC) meeting minutes, scheduled for release on Wednesday, as market volatility persists.

Long-dated U.S. Treasury yields spiked, with the 10-year yield trading at 5.313% and the 30-year yield at 5.67%. Analysts noted heightened volatility in bonds, citing potential shifts in Federal Reserve policy, economic growth, and geopolitical tensions. Morgan Stanley’s Lisa Shalett and Bill Gross both warned of increased market uncertainty, with Gross advising against holding bonds except for one-year Treasury bills yielding 4.55%. Oil prices, meanwhile, showed signs of stabilization, with Brent crude trading above $100 a barrel.

Key stocks to watch include SpaceX (SPCX), USA Rare Earth Inc. (USAR), Constellation Energy Corp. (CEG), and Novavax Inc. (NVAX). Novavax shares surged nearly 20% on Monday, benefiting from positive developments in rival vaccines. Asian markets opened mixed, with Japan’s Nikkei 225 and China’s SSE Composite trading higher, while South Korea’s KOSPI dipped.