Nasdaq hits record high as tech stocks rise despite Treasury yields

• AI-related stocks led gains with Nvidia rising over 2%, Meta and Microsoft advancing 2% and 1% respectively, while 10-year Treasury yields climbed to 5.349%, a multiyear high
• Oil prices declined with Brent crude falling 1.9% to $100.30 and WTI down 2% to $89.29, easing inflationary pressures as probability of October Fed rate hike dropped from 70% to 24%
• Analysts expect S&P 500 Q3 earnings to increase over 30% year-over-year, driven largely by artificial intelligence companies as earnings season begins next week with major banks reporting

Market Summary: Tech Stocks Drive Nasdaq to Record High

Key Market Movements:

The Nasdaq Composite reached an all-time intraday high of 27,544.07 on Monday, gaining 1.05%, while the S&P 500 rose approximately 0.7% and the Dow Jones added 90 points (+0.2%). The rally occurred despite rising Treasury yields, with the 10-year yield climbing 9 basis points to 5.349% and the 30-year yield increasing 7 basis points to 5.703%—both at multiyear highs.

Leading Sectors and Stocks:

Artificial intelligence-related stocks led the advance. Nvidia gained 2%, Meta Platforms rose over 2%, Microsoft advanced more than 1%, and Tesla climbed 2%. The technology sector continued attracting investors despite concerns about prolonged elevated interest rates due to persistent inflation.

Economic Data:

The ISM services PMI came in at 54.9 in September, meeting expectations but slightly below the prior month. September jobs data showed slower-than-expected growth, reducing October Fed rate hike probability to 24% from 70% the previous week, according to CME's FedWatch tool.

Energy Markets:

Oil prices provided support, with Brent crude falling 1.9% to $100.30 per barrel and WTI declining 2% to $89.29, driven by improved Middle Eastern crude exports and G7 supply commitments.

Corporate Activity:

Notable M&A activity included Rockwell Automation acquiring PTC for $22.6 billion and C.H. Robinson purchasing a transportation broker for $5.8 billion in stock and cash.

Outlook:

Investors await Fed meeting minutes for policy insights and third-quarter earnings season beginning next week. Analysts expect S&P 500 earnings to surge over 30% year-over-year, primarily driven by AI-related companies.