The Nasdaq Composite climbed to a fresh all-time high on Monday, powered by gains in stocks tied to the artificial-intelligence trade, even as the Dow Jones Industrial Average slipped and Treasury yields pushed toward multiyear highs. Investors now await Wednesday's Federal Reserve minutes for clues on the path of interest rates.
Nasdaq climbs to a record as AI stocks lead
The Nasdaq Composite rose more than 0.7% to hit as much as $27,403.57, its highest level ever. The Dow Jones Industrial Average last traded down 91 points, shedding nearly 0.2%. The S&P 500 advanced about 0.4%.
Several stocks tied to the artificial-intelligence trade led the tech-heavy index higher. SpaceX jumped roughly 5%, while Meta and Microsoft ticked up more than 2% and 1%, respectively. Nvidia gained more than 1%, and Tesla rose nearly 2%.
Treasury yields push toward multiyear highs
Tech stocks rallied even as bond yields advanced. The benchmark 10-year Treasury note yield was last up about 2 basis points to 5.298%. The 30-year rose 3 basis points to 5.659%. Both yields surged to multiyear highs in recent weeks, as traders fretted that inflation would lead the Fed to keep rates higher for longer.
ISM data and Fed minutes in focus
Stocks and bonds moved as traders processed the Institute for Supply Management's latest report on the services sector. The ISM report showed its Purchasing Managers' Index grew 54.9% in September, roughly in line with expectations, though the figure came in modestly below the index's growth rate for the previous month.
Investors are now turning to other signals. On Wednesday, the Fed will release notes from its September meeting, potentially shedding light on its decision to hike rates by a quarter of a percentage point last month.
Traders also watched oil prices, which were lower on Monday. Brent crude futures shed more than 0.7% to trade at $101.51 a barrel. West Texas Intermediate crude was trading down 1% at $88.53 a barrel.
The moves followed a week defined by surging Treasury yields and a lackluster jobs report that helped ease concerns about another Fed rate hike this month. According to Citi strategist Beata Manthey: "global equities have climbed c12% YTD and are just below all-time highs".
Source: CNBC
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