S&P 500 rises, Nasdaq hits record high as megacap tech stocks advance
SPY•The S&P 500 rose 0.50% and the Nasdaq gained 0.77% to reach an all-time high, while the Dow fell 0.06%. Megacap technology stocks advanced as 10-year Treasury yields stood at 5.328%.
1. Tech stocks lead gains
The S&P 500 and Nasdaq rose on Monday, with the Nasdaq reaching an all-time high as most megacap and growth stocks advanced. Nvidia gained 1.2%, while Meta Platforms, Microsoft and Tesla rose between 1.6% and 2.4%. Ten of the 11 S&P 500 sectors traded higher; real estate was the only laggard.
2. Rates and market movers
The 10-year U.S. Treasury yield was 5.328%, as investors weighed government finances, debt issuance and energy costs. The S&P 500 software and services index rose 1.2%, while the Philadelphia semiconductor index fell 0.1%. PTC surged 34% after Schneider Electric agreed to acquire it in a $22.6 billion all-cash deal. RXO advanced 21.8% after C.H. Robinson agreed to buy it for $5.8 billion in a stock-and-cash transaction.
3. Earnings and economic data
Goldman Sachs analysts expected most companies to surpass consensus earnings estimates this quarter, citing 9% year-on-year earnings growth for the median S&P 500 company. U.S. services sector activity slowed in September. Traders saw an 80% chance the Federal Reserve would hold rates steady this month, while a December rate hike remained largely priced in.
