S&P 500 rises, Nasdaq reaches record as megacap tech stocks gain
SPY•The S&P 500 rose 0.39% and the Nasdaq gained 0.62% to a record, while the Dow fell 0.13%. PTC surged 34.6% after Schneider Electric agreed to acquire it for $22.6 billion.
1. Stocks advance
The S&P 500 and Nasdaq rose on Monday as most megacap and growth stocks advanced, while the Dow slipped. At 10:19 a.m. ET, the S&P 500 was up 0.39% at 7,753.05, the Nasdaq was up 0.62% at 27,360.28, and the Dow was down 0.13% at 51,110.61. Nvidia gained 1.1%, while Meta Platforms, Microsoft and Tesla each added more than 1%.
2. Deals and bond yields
PTC climbed 34.6% after Schneider Electric agreed to acquire the software firm in a $22.6 billion all-cash deal. RXO rose 22.5% after C.H. Robinson agreed to buy it for $5.8 billion in a stock-and-cash transaction; C.H. Robinson fell 11.8%. The 10-year U.S. Treasury yield was 5.296% as bond yields held near their highs.
3. Earnings and rates
Goldman Sachs analysts expected most companies to surpass consensus earnings estimates this quarter and cited 9% year-on-year earnings growth for the median S&P 500 stock. Traders saw an 80% chance that the Federal Reserve would hold rates steady this month, while a December rate hike remained largely priced in.
