Nasdaq hits record close as AI stocks surge and oil prices dip

On Monday the Nasdaq posted its highest closing level ever, helped by a 2.1% jump in Nvidia that lifted its valuation to $5.76 trillion and a 1.5% gain for Microsoft. Meta Platforms, Tesla and other tech names each rose about 2%, while the S&P 500 stayed just below its August record. The rally was sparked by softer September payroll numbers, which cut the perceived chance of a Fed rate hike at its October meeting to roughly 24%, according to CME's FedWatch tool.

Falling oil prices, driven by increased Middle-East crude exports and a G7 commitment to boost supply, added to the optimism. Analysts expect the upcoming third-quarter earnings season, beginning with large U.S. banks, to be buoyed by AI-related profit growth. Other notable moves included a 33% surge in PTC after Schneider Electric agreed to a $22.6 billion acquisition and a 22% jump in RXO following a $5.8 billion deal with C H Robinson Worldwide.