Nasdaq notches record high close as investors focus on earnings

NEW YORK: The Nasdaq notched a record high close on Monday, lifted by Nvidia and Microsoft, as investors focused on a dip in oil prices and looked ahead to quarterly earnings reports.

It was the Nasdaq's second day of sharp gains after weaker-than-expected jobs data on Friday dampened expectations for an interest rate hike from the Federal Reserve at its policy meeting this month.

The S&P 500 rose and was about 0.3 per cent below its August 13 record high close.

AI heavyweight Nvidia climbed 2.1 per cent and also reached a record-high close, boosting its stock market value to US$5.76 trillion.

Microsoft added 1.5 per cent, while Meta Platforms and Tesla gained about two per cent each.

Oil prices slipped after crude exports from the Middle East increased and the Group of Seven nations pledged to boost supplies.

"With the economic data calendar being light and earnings about a week away, investors are really groping for anything positive to glom onto, and clearly they're looking at lower energy prices," said Art Hogan, chief ​market strategist at B. Riley Wealth.

BANKS KICK OFF THIRD-QUARTER RESULTS

Third-quarter earnings season kicks off next week with reports from large US banks.

Analysts on average see S&P 500 earnings jumping over 30 per cent year over year, thanks largely to AI-related stocks, according to LSEG data.

Following jobs data on Friday that showed US job growth slowed more than expected in September, traders see a 24 per cent chance of an interest rate hike at the Fed's October meeting, down from a 70 per cent chance a week ago, according to CME's FedWatch tool.

PTC surged 33 per cent after France's Schneider Electric agreed to acquire the software firm in a US$22.6 billion all-cash deal.

The S&P 500 climbed 0.66 per cent to end the session at 7,773.95 points.

The Nasdaq gained 1.05 per cent to 27,477.31 points, while the Dow Jones Industrial Average rose 0.18 per cent to 51,267.90 points.

The Nasdaq's previous record high close was on September 22.

Ten of the 11 S&P 500 sector indexes rose, led by materials , up 1.22 per cent, followed by a 1.14 per cent gain in communication services.

Optimism about robust corporate earnings has helped US stocks outperform global rivals in the last six months, despite rising Treasury yields and higher oil prices related to the US war with Iran.

RXO jumped over 22 per cent after logistics firm C.H. Robinson Worldwide agreed to buy the transportation broker in a stock-and-cash transaction for US$5.8 billion. C.H. Robinson fell nearly 11 per cent.

Cerebras Systems rose 9 per cent after OpenAI CEO Sam Altman said on social media the chip designer is a "close partner" and that the companies have "deep engagement pushing on the frontiers of speed."

Advancing issues outnumbered falling ones within the S&P 500 by a 1.7-to-1 ratio.

The S&P 500 posted 13 new highs and 20 new lows; the Nasdaq recorded 57 new highs and 243 new lows.

Volume on US exchanges was relatively light, with 16.8 billion shares traded, compared to an average of 17.3 billion shares over the previous 20 sessions.