Wall Street stocks pushed higher on Monday, lifted by artificial intelligence leaders and falling energy costs, even as Treasury yields hovered near multi-decade highs. The Nasdaq Composite climbed to a record close, while the S&P 500 moved within striking distance of its all-time peak.
Global equities edged toward record territory as investors shrugged off elevated bond yields and persistent inflation concerns across international markets. On Wall Street, the technology sector drove the session forward, propelled by strong gains among artificial intelligence heavyweights and a welcome retreat in crude oil prices following increased Middle East exports.
Nasdaq Reaches New Record as Technology Shares Rally
The Nasdaq Composite rose 1.05 percent to finish trading at an all-time high of 27,477.31 points. It was supported by strong performances from companies driving the artificial intelligence buildout following softer-than-expected employment figures at the end of the previous week.
Large technology companies anchored the advance. Nvidia climbed 2.12 percent to close at $238.90, pushing its market value to about $5.76 trillion according to market data. Tesla gained 2.18 percent to $378.69, Meta Platforms added 1.90 percent to $741.90, and Microsoft moved up 1.48 percent to $525.18. SpaceX shares jumped more than 7 percent, while Cerebras Systems rose 8 percent after OpenAI CEO Sam Altman identified the chip designer as a close partner.
Broader market indicators also finished in positive territory. The benchmark S&P 500 climbed 0.66 percent to end at 7,773.95 points, sitting about 0.5 percent below its August peak. The blue-chip Dow Jones Industrial Average advanced 90.94 points, or 0.18 percent, to close at 51,267.90.
Treasury Yields Remain Elevated While Rate Hike Expectations Ease
The equity market gains defied ongoing pressure from the bond market. The 10-year Treasury yield rose to 5.31 percent, lingering near highs last recorded in 2002. The 30-year bond yield touched 5.664 percent, marking a 24-year high at one point during the session.
Morgan Stanley Wealth Management investment chief Lisa Shalett noted that while bond volatility has picked up over the past six weeks, it has not reached the extremes that triggered the equity bear market in 2022.
Investors found relief in shifting interest rate probabilities. Following a weaker-than-expected September employment report, traders scaled back expectations for monetary tightening. Traders saw roughly an 18 percent probability of an interest rate hike at the Federal Reserve’s policy meeting down sharply from a 70 percent chance a week earlier.
Oil Prices Fall as Middle East Exports Increase
Oil prices moved lower, offering additional support to equity investors. Brent crude futures settled down 1.9 percent to close at $100.32 per barrel, while West Texas Intermediate crude fell about 1.8 percent to $89.43 per barrel. The decline followed an increase in crude exports from the Middle East alongside a Group of Seven pledge to boost overall supplies.
Attention now turns toward the corporate sector as third-quarter earnings season approaches. Major United States banks are scheduled to begin reporting results next week.
Across international exchanges, trading activity reflected a mix of regional catalysts. In Asia, Japan’s Nikkei 225 added 0.29 percent, South Korea’s Kospi slipped 0.23 percent, Australia’s S&P/ASX 200 advanced 0.53 percent, and Hong Kong’s Hang Seng Index gained 0.95 percent while mainland Chinese markets remained closed for the Golden Week holiday. European indices finished mostly higher, though France’s CAC 40 declined 0.80 percent.