Nasdaq Index: Big Tech and Software Deals Drive Fresh Record High

• Major AI stocks drove gains with Nvidia up over 1%, Meta up more than 2%, and Microsoft gaining over 1%, as traders prioritized growth stocks with strong AI stories despite the 10-year Treasury yield climbing 6 basis points to 5.341%
• Software sector received a boost from Schneider Electric's $205 per share acquisition of PTC, demonstrating strategic buyers' willingness to pay cash for major software assets even amid rising yields
• The Nasdaq's main uptrend remains intact with support at 26,706.14, while the S&P 500 approaches its record high at 7,816.70, though the rally remains narrow and concentrated in AI-related names

Market Summary: Nasdaq Hits Fresh Record High on Tech Strength

Key Market Movements

The Nasdaq Composite reached a new record high of 27,452.15 on Monday, gaining 261.29 points (+0.96%), outperforming broader markets despite rising Treasury yields. The S&P 500 climbed 52.91 points (+0.69%) to 7,775.63, approaching its own record high of 7,816.70, while the Dow Jones Industrial Average added 147.18 points (+0.29%) to close at 51,324.14.

Primary Drivers

Big Tech and AI Stocks: Megacap technology companies led the rally, with investors focusing on firms with strong AI positioning and earnings outlooks. Nvidia rose over 1% near record highs, Meta gained more than 2%, Microsoft added over 1%, Tesla climbed 2%, and SpaceX surged nearly 6%. Microsoft received a buy upgrade from Melius Research based on its AI security and governance capabilities.

Software M&A Activity: PTC became the S&P 500's top performer after Schneider Electric agreed to acquire the company for $205 per share. Separately, C.H. Robinson announced plans to purchase RXO for $5.8 billion, sending RXO shares up 21.8% while C.H. Robinson fell 12.9%.

Bond Market Pressure

The 10-year Treasury yield climbed 6 basis points to 5.341%, while the 30-year yield rose 7 basis points to 5.699%. Despite typically unfavorable conditions for growth stocks, traders continued buying AI-focused companies, treating them as safe havens rather than rate-sensitive plays.

Market Implications

The rally remains narrow and selective, with investors prioritizing companies expected to benefit from AI infrastructure buildout. Heavy government debt issuance and concerns over government finances continue pressuring bond markets globally. Technical support holds at the 50-day moving average, maintaining the uptrend bias.