The Nasdaq Composite closed at a record on Monday as Wall Street bough the recent dip in tech and artificial intelligence stocks.
The tech-heavy index rose 0.4% to top its Aug. 13 closing high of 21,713.14. The Dow Jones Industrial Average rose 114 points, or 0.3%. The S&P 500 was up 0.2% and within striking distance of a high of its own.
Marked breadth was weak all day, with tech one of the few sectors that really shined. The rest of the market perked up in the final hour of trading.
“Equities are holding onto early gains on a combination of rate cut hopes and positive S&P 500 inclusion headlines,” writes Mizuho’s Daniel O’Regan. “Tech is leading the tape higher again thanks to moves in high beta names. Software is staging a nice rebound as it catches up to Semi’s and the rest of Tech as well.”
The yield on the 2-year Treasury note dropped to 3.49%, its lowest yield since Sept. 8, 2022, according to Dow Jones Market Data. The 10-year yield was down to 4.045%.
Wall Street will get the Bureau of Labor Statistics’ preliminary revision of jobs growth for April 2024 through March 2025 on Tuesday, followed by the producer price index on Wednesday and the consumer price index on Thursday.
“After last week’s tepid jobs numbers, it will likely take a major upside surprise from this week’s inflation data to derail a Fed rate cut next week,” writes Chris Larkin, managing director, trading and investing at E*TRADE from Morgan Stanley.