The Nasdaq closed at a record high on Monday as gains in Nvidia and other technology stocks lifted Wall Street, while investors looked ahead to the start of the third-quarter earnings season.
The Nasdaq rose 1.05% to 27,477.31, surpassing its previous record close on Sept 22. The S&P 500 gained 0.66% to 7,773.95, while the Dow Jones Industrial Average added 0.18% to 51,267.90.
Nvidia climbed 2.1% to a record close, taking its market value to US$5.76 trillion. Microsoft rose 1.5%, while Meta Platforms and Tesla gained about 2% each.
The rally came after weaker-than-expected US jobs data last week reduced expectations of a Federal Reserve interest rate hike this month. Traders now see a 24% chance of a rate increase at the Fed’s October meeting, down from 70% a week earlier, according to CME’s FedWatch tool.
Oil prices also eased after crude exports from the Middle East increased and Group of Seven nations pledged to boost supplies.
“With the economic data calendar being light and earnings about a week away, investors are really groping for anything positive to glom onto, and clearly they’re looking at lower energy prices,” said Art Hogan, chief market strategist at B. Riley Wealth.
Third-quarter earnings season begins next week with results from major US banks. Analysts expect S&P 500 earnings to rise more than 30% year-on-year, largely driven by AI-related stocks, according to LSEG data.
Among individual stocks, PTC surged 33% after Schneider Electric agreed to acquire the software company in a US$22.6 billion all-cash deal.
RXO jumped more than 22% after C.H. Robinson Worldwide agreed to buy the transportation broker for US$5.8 billion in a cash-and-stock transaction, while C.H. Robinson fell nearly 11%.
Cerebras Systems gained 9% after OpenAI CEO Sam Altman described the chip designer as a “close partner” and said the companies have “deep engagement pushing on the frontiers of speed.”
Ten of the 11 S&P 500 sector indexes ended higher, led by materials which rose 1.22%, followed by communication services with a 1.14% gain.
Trading volume was relatively light, with 16.8 billion shares changing hands on US exchanges compared with the 17.3 billion average over the previous 20 sessions.
