The Nasdaq closed at a record high on Monday, lifted by Nvidia and Microsoft, as investors focused on lower oil prices and looked ahead to upcoming quarterly earnings reports.
It marked the Nasdaq’s second consecutive day of strong gains after weaker-than-expected employment data on Friday reduced expectations for a Federal Reserve interest rate hike at its policy meeting this month.
The S&P 500 also advanced, ending about 0.3% below its record closing high reached on August 13.
Nvidia, a leading artificial intelligence company, climbed 2.1% and reached a new closing record, pushing its market capitalization to $5.76 trillion.
Microsoft gained 1.5%, while Meta Platforms and Tesla each rose about 2%.
Oil prices declined after crude exports from the Middle East increased and Group of Seven nations pledged to boost energy supplies.
“With the economic data calendar being light and earnings about a week away, investors are really looking for anything positive to hold onto, and clearly they are looking at lower energy prices,” said Art Hogan, chief market strategist at B. Riley Wealth.
Banks Set to Begin Third-Quarter Earnings Season
The third-quarter earnings season begins next week with reports from major U.S. banks.
Analysts expect S&P 500 earnings to increase more than 30% year over year, driven largely by companies benefiting from artificial intelligence investment, according to LSEG data.
Following Friday’s employment report showing weaker-than-expected job growth in September, traders now see a 24% probability of a Federal Reserve rate increase at its October meeting, down from 70% a week earlier, according to CME’s FedWatch tool.
PTC surged 33% after France’s Schneider Electric agreed to acquire the software company in an all-cash transaction valued at $22.6 billion.
The S&P 500 gained 0.66% to close at 7,773.95 points.
The Nasdaq rose 1.05% to 27,477.31 points, while the Dow Jones Industrial Average increased 0.18% to 51,267.90 points.
The Nasdaq’s previous record closing high was reached on September 22.
Ten of the 11 S&P 500 sectors finished higher. Materials led gains with a 1.22% increase, followed by communication services, which rose 1.14%.
Optimism around strong corporate earnings has helped U.S. stocks outperform global markets over the past six months, despite rising Treasury yields and higher oil prices linked to the U.S. war with Iran.
RXO jumped more than 22% after logistics company C.H. Robinson Worldwide agreed to acquire the transportation broker in a stock-and-cash deal valued at $5.8 billion. Shares of C.H. Robinson fell nearly 11%.
Cerebras Systems gained 9% after OpenAI CEO Sam Altman said on social media that the chip designer is a “close partner” and that the companies have deep collaboration focused on advancing AI performance.
Advancing stocks outnumbered declining stocks within the S&P 500 by a ratio of 1.7-to-1.
The S&P 500 recorded 13 new 52-week highs and 20 new lows, while the Nasdaq posted 57 new highs and 243 new lows.
Trading volume on U.S. exchanges was relatively light, with 16.8 billion shares traded compared with the 17.3 billion average over the previous 20 sessions.
