US stocks edge near records Nasdaq sets all-time high on buyout boost
U.S. stocks rose on Monday, coming close to their all-time highs. The S&P 500 climbed 0.7%, pulling within 0.3% of its record set during the summer. The Nasdaq composite rallied 1.1%, setting a new all-time high. The Dow Jones Industrial Average added 90 points, or 0.2%.
Two major buyout announcements helped lift the market. Schneider Electric of France agreed to pay $205 in cash for each share of PTC, valuing the software company at about $22.6 billion. PTC’s stock surged 33.5%, and other software stocks, like Autodesk, also gained. Meanwhile, C.H. Robinson Worldwide said it would buy RXO, a truck brokerage business, for $30.25 per share. RXO jumped 22.5%, while C.H. Robinson fell 10.8%.
The deals highlighted the promise of artificial-intelligence technology, which also boosted stocks across the AI industry. Nvidia, a key player in AI chips, rose 2.1%, contributing significantly to the S&P 500’s gains. Broadcom also climbed 2.1%. Trading was relatively quiet as investors awaited the start of the latest earnings reporting season. Analysts expect nearly 30% profit growth for S&P 500 companies from July through September, marking the third straight quarter of growth above 25%.
The oil market remained volatile due to uncertainty over the war with Iran, with Brent crude settling at $100.32 per barrel, down 1.9%. High oil prices have pushed up bond yields, with the 10-year U.S. Treasury yield rising to 5.31%. Strong economic data, including spending on AI data centers and consumer activity, has contributed to rising yields, which can slow economic growth and reduce investor appetite for stocks.
A report on Monday showed mixed signals about the U.S. economy. While business activity in services industries grew for a 27th straight month, the growth was weaker than expected. Additionally, prices for materials and services rose at a faster rate, raising concerns about inflation. The Federal Reserve is expected to raise interest rates at least once by the end of the year to curb inflation. Abroad, France’s CAC 40 fell 0.8% due to worries about government debt, while Japan’s Nikkei 225 jumped 2.4% on strength in technology stocks.