U.S. Stocks Climb Near Records on AI-Driven Buyouts

U.S. stocks edged closer to all-time highs on Monday, driven by two major acquisition announcements. The S&P 500 climbed 0.7%, pulling within 0.3% of its summer record, while the Dow Jones Industrial Average added 90 points, or 0.2%. The Nasdaq composite rallied 1.1% to set a new record.

PTC surged 33.5% after Schneider Electric of France agreed to buy the software company for $205 per share, valuing it at about $22.6 billion. The deal also boosted other software stocks, with Autodesk rising 4.5%. Meanwhile, RXO jumped 22.5% following news that C.H. Robinson Worldwide would acquire it for $30.25 per share. C.H. Robinson fell 10.8%, marking the largest loss in the S&P 500.

Both deals highlighted the promise of artificial-intelligence technology, lifting stocks across the AI sector. Nvidia gained 2.1%, contributing significantly to the S&P 500’s rise, while Broadcom climbed 2.1%. Trading was otherwise subdued as investors awaited the start of the latest earnings reporting season, with analysts forecasting nearly 30% profit growth for S&P 500 companies from a year earlier.

The S&P 500 closed at 7,773.95, the Dow at 51,267.90, and the Nasdaq at 27,477.31. Oil prices fluctuated due to uncertainty about the war with Iran, with Brent crude settling at $100.32, down 1.9%. The 10-year U.S. Treasury yield rose to 5.31%, nearing its highest level since 2002. A mixed report on U.S. service sector growth indicated slower-than-expected expansion but faster inflation.