US Stocks Near All-Time Highs on Buyout Deals and AI Boost
US stocks climbed closer to all-time highs on Monday, driven by two major buyout announcements. The S&P 500 gained 0.7%, putting it just 0.3% away from its summer record. The Dow Jones Industrial Average rose 90 points, or 0.2%, while the Nasdaq composite surged 1.1% to set a new record.
PTC led the market rally with a 33.5% jump 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 soared 22.5% following news that C.H. Robinson Worldwide would acquire it for $30.25 per share. C.H. Robinson fell 10.8%, the worst loss in the S&P 500.
Both Schneider Electric and C.H. Robinson highlighted the potential of artificial-intelligence technology in their deal announcements. The AI sector saw strong gains, with Nvidia rising 2.1% and Broadcom climbing 2.1%. Trading was otherwise quiet ahead of the upcoming earnings reporting season, with analysts expecting nearly 30% profit growth for S&P 500 companies.
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 over the war with Iran, settling at $100.32 per barrel. The 10-year US Treasury yield rose to 5.31%, nearing its highest level since 2002. A report on the US services sector showed slower-than-expected growth but faster inflation pressures.