Nasdaq notches record high close as investors focus on earnings
SPY•The Nasdaq rose 1.05% to a record close of 27,477.31 on Monday, while the S&P 500 gained 0.66% and the Dow rose 0.18%. Investors focused on lower oil prices and upcoming earnings, while traders saw a 24% chance of an October Fed rate hike, down from 70% a week earlier.
1. Nasdaq reaches record close
The Nasdaq closed at a record high, lifted by Nvidia, up 2.1%, and Microsoft, up 1.5%. The S&P 500 ended at 7,773.95, about 0.3% below its August 13 record close; the Dow finished at 51,267.90.
2. Earnings and rate outlook
Investors looked ahead to third-quarter earnings reports, which begin next week with large US banks. Analysts expected S&P 500 earnings to rise more than 30% year over year, largely due to AI-related stocks. After September job growth came in weaker than expected, traders' estimated chance of an October Fed rate hike fell to 24% from 70% a week earlier.
3. Oil and company moves
Oil prices slipped after Middle East crude exports increased and G7 nations pledged to boost supplies. PTC surged 33% after Schneider Electric agreed to acquire it in a $22.6 billion all-cash deal, while RXO rose more than 22% after C.H. Robinson agreed to buy it for $5.8 billion in a stock-and-cash transaction.
