Tech Stocks Fuel Nasdaq to New High Amid Mixed Market Open

The US stock market opened on a subdued note as tech stocks took a breather following recent gains. The S&P 500 and Nasdaq Composite showed positive momentum, with the Nasdaq reaching a historic high, driven by strong performances from Nvidia, Meta Platforms, Microsoft, and Tesla. The Dow Jones Industrial Average, however, faced a slight decline amid elevated Treasury yields.

Technology heavyweights led early gains, with Nvidia rising 1.1% and trading near its record high. Meta Platforms, Microsoft, and Tesla each gained more than 1%. Seven of the 11 S&P 500 sectors advanced, led by communication services and utilities. Software stocks outperformed, pushing the S&P 500 software and services index 1.4% higher, while chip stocks lagged.

PTC was the S&P 500’s biggest gainer, surging 34.6% after Schneider Electric agreed to acquire the software company in a $22.6 billion all-cash deal. Strong expectations for corporate earnings have helped US equities outperform global peers despite geopolitical uncertainty and persistent inflation concerns. Goldman Sachs analysts project a 9% year-on-year earnings growth for the median S&P 500 company.

Risk appetite remained restrained as government bond yields stayed close to recent highs. The benchmark 10-year US Treasury yield stood at 5.296%, amid concerns about deteriorating public finances and elevated energy costs. The Nasdaq’s latest record followed gains last week after weaker-than-expected employment data reduced expectations of an October interest-rate increase.