U.S. Stocks Rally Despite Treasury Sell-Off Nasdaq Hits Record High

The U.S. stock market closed higher on Monday, with all three major indices gaining ground despite a significant sell-off in U.S. Treasury bonds. The Dow Jones Industrial Average rose 0.18% to 51,268.26, the S&P 500 gained 0.66% to 7,773.99, and the Nasdaq Composite climbed 1.05% to 27,477.31, hitting a record high. Tech stocks, particularly NVIDIA (NVDA.US), which reached a new all-time high of $240.098, drove the rally.

European markets showed mixed results, with the pan-European STOXX 600 index up 0.4%, while France's CAC 40 fell 0.8% due to ongoing fiscal concerns. In Asia-Pacific, the Nikkei 225 and Indonesia Composite Index rose 2.4% and 1.36%, respectively.

The U.S. dollar strengthened against most major currencies, including the euro and the British pound, but weakened slightly against the Canadian dollar. Meanwhile, Bitcoin approached $87,000 before settling at $85,925, while Ethereum fell 0.54% to $2,715.

The Trump administration is reportedly planning to ease restrictions on tax-exempt diesel to lower fuel costs ahead of the November midterm elections. This move aims to reduce the retail price of diesel, which has surged due to global supply disruptions. U.S. business activity also accelerated to its fastest pace in over five years, with robust growth coexisting with rising inflation.