The Nasdaq Composite achieved a new record high, fueled by a strong rally in tech shares, particularly those linked to artificial intelligence, successfully shrugging off rising U.S. Treasury yields and mixed economic data. This market resilience came alongside significant corporate developments, including major acquisitions and analyst upgrades for several key companies.
Globally, Brazilian stocks surged following surprising election results, while European markets opened higher despite political uncertainties that pushed the euro to a 17-month low. Geopolitical tensions in the Middle East and concerns over government spending also featured prominently in the day’s financial discourse.
The Nasdaq Composite surged to a fresh all-time high, driven by a robust tech sector rally, even as traders navigated rising U.S. Treasury yields and a stream of new economic data. The tech-heavy index defied headwinds, posting a record close of 27,477.31, up 1.05%, after hitting an intraday high of 27,544.07. The broader market also saw gains, with the S&P 500 climbing 0.66% to 7,773.95 and the Dow Jones Industrial Average advancing 90.94 points, or 0.18%, to close at 51,267.90.
Artificial intelligence-related stocks were particularly strong performers, leading the charge for the Nasdaq. SpaceX jumped more than 7%, while hyperscalers Meta Platforms and Microsoft saw gains of nearly 2% and over 1%, respectively. Chip giant Nvidia and electric vehicle leader Tesla each rose 2%.
Jay Hatfield, founder and CEO of Infrastructure Capital Advisors, characterized tech as an "inverse bond trade" and an "unstoppable juggernaut." He highlighted the sector's role as a safe haven since the pandemic, citing its high earnings growth and relatively low sensitivity to interest rates, noting that the demand for compute power makes tech largely immune to debt costs.
Paradoxically, as tech stocks rallied, bond yields also advanced. The benchmark 10-year Treasury note yield rose more than 3 basis points to 5.311%, and the 30-year yield climbed over 3 basis points to 5.664%. These yields have recently reached multiyear highs, fueled by trader concerns that persistent inflation could compel the Federal Reserve to maintain higher interest rates for an extended period.
Economic data from the Institute for Supply Management showed the Purchasing Managers Index for services at 54.9% in September, largely in line with expectations but slightly below the previous month's growth. Notably, the employment index rose to 50.1, indicating expansion, and prices increased to 74, marking the highest 12-month average since March 2023. However, new export orders experienced a sharp decline, signaling contraction for the first time in eight months. Investors are now keenly awaiting the minutes from the Fed’s September meeting for insights into its quarter-percentage-point rate hike decision.
Oil prices saw a downturn, with Brent crude futures settling down 1.89% at $100.32 a barrel, and West Texas Intermediate crude falling 1.8% to $89.43 a barrel. This follows a week marked by surging Treasury yields and a jobs report that eased some concerns about an immediate Fed rate hike.
Citi strategist Beata Manthey reflected on the market's current state, observing that despite a growing list of headwinds like geopolitics and higher rates, global equities have climbed approximately 12% year-to-date and are near all-time highs. Manthey suggested this "relative calm" points to resilience in equity fundamentals, maintaining a "resilience camp" stance for now.
Global Market Developments and Corporate Shifts
Brazil's Post-Election Surge
Brazilian markets experienced a significant rally following the country’s presidential election results. The iShares MSCI Brazil ETF (EWZ) surged more than 13% on Monday, marking its best day since March 2020. This jump came after challenger Flávio Bolsonaro, son of former president Jair Bolsonaro, narrowly outpolled incumbent Luiz Inácio Lula da Silva in the first round, defying pre-election polls and making Bolsonaro an overwhelming favorite for the Oct. 25 runoff. Reflecting this market optimism, the dollar-to-real exchange rate dropped to 4.99, its lowest level since May. Brazil-based financial giants Itau Unibanco and Banco Bradesco also saw their shares rise by over 12%.
The market enthusiasm extended to beer stocks with significant exposure to Brazil. Ambev shares jumped about 10% in U.S. trading, benefiting from its dominant Brazilian operations, which reported first-half revenue of 20.8 billion reais and EBITDA of 7.1 billion reais for its beer division. Global brewer AB InBev, which holds a controlling stake in Ambev, rose approximately 1.5%, also benefiting from the positive sentiment.
Major M&A and Analyst Moves
In corporate news, shipping giant C.H. Robinson Worldwide announced a $5.8 billion stock-and-cash deal to acquire RXO, aiming to expand its footprint in North America’s truck brokerage business. RXO shares surged over 20% on the news, while C.H. Robinson’s shares dropped almost 12% in premarket trading. The deal values RXO at $30.25 per share, a 29% premium to its Friday close, and is expected to generate $300 million in annual cost savings within two years.
Software company PTC saw its shares soar by almost 36% after France’s Schneider Electric announced an all-cash acquisition for $22.6 billion, or $205 per share—a 42% premium to PTC’s last closing price. The merger, expected to close by Q3 2027, is poised to create substantial scale and accelerate innovation for PTC, though Schneider Electric's shares tumbled 7.6% on the news as analysts described the deal as "opportunistic" and highlighted its significant size.
Several companies received favorable analyst coverage, driving stock surges. Jefferies initiated coverage of Samsara (IOT) with a "buy" rating and a $50 price target, projecting 22% upside and 22% annual revenue growth through fiscal 2029. Analyst Samad Samana cited Samsara's "moated AI winner" status due to its proprietary data platform. Harley-Davidson (HOG) shares popped 5.7% after Citi upgraded the motorcycle maker to "buy," increasing its price target to $33 and citing potential benefits from new product introductions, cost savings, and its LiveWire electric motorcycle lineup. DraftKings (DKNG) also gained over 5% following a Bank of America upgrade to "buy," with analyst Julie Hoover praising the company's prediction markets as a "win-win" expected to generate significant fees and market-making revenue.
In the competitive chip sector, Taiwan Semiconductor Manufacturing Company (TSM) advanced 2.5% to a 52-week high of $485 per share after Elon Musk indicated a partnership between his chip venture, Terafab, and TSM for semiconductor factories in Texas. Meanwhile, Intel, which had previously discussed a partnership with Terafab, saw its shares decline by 4%. Musk's SpaceX also rose 5.5% after Morgan Stanley deemed the stock "cheap and getting cheaper." The company also gained attention for a proposed rebranding of its AI unit to "SpaceXSI," aligning with President Donald Trump's directive to use the term "Super Intelligence."
Euro at Multi-Year Lows Amid European Uncertainty
The euro hit a 17-month low against the U.S. dollar, falling 0.6% and reaching its weakest level since May 19, 2025. This depreciation was fueled by escalating concerns over the political trajectories of major eurozone economies like Spain and France, coupled with rising inflation, higher interest rates, weak growth, and increasing fragmentation in bond markets. Barclays economists highlighted France's volatile fiscal and political outlook as a key factor clouding the eurozone's prospects.
Political instability in Europe was underscored by Spanish Prime Minister Pedro Sánchez calling a snap election for November 29 after Congress rejected measures aimed at addressing the country's housing crisis.
European stock markets, however, opened Monday's session higher. The pan-European Stoxx 600 rose 0.5%, with the U.K. FTSE 100 gaining 0.45%, France’s CAC 40 adding 0.15%, Germany’s DAX advancing almost 0.1%, and Italy’s FTSE MIB moving 0.11% higher. Chemicals and basic resources led sectoral gains, while construction lagged.
Asian Markets and Geopolitical Notes
Asian markets generally traded higher, with Japan’s Nikkei 225 closing 2.4% up at 69,946.86, and Australia’s S&P/ASX 200 ending flat at 8,686.40. Hong Kong’s Hang Seng index was marginally higher, though mainland China and South Korea markets were closed for holidays.
Geopolitical tensions continued to simmer in the Middle East, with Iranian parliament speaker Mohammad Bagher Ghalibaf stating that the Strait of Hormuz would remain closed until conditions for ending the conflict with the U.S. were met. In related news, the U.S. Air Force withdrew all B-1 bombers from a UK air base used for strikes against Iran, following an investigation into a planned terror attack.
Goldman Sachs International co-CEO Anthony Gutman urged governments to cut spending to rein in surging borrowing costs, citing recent turmoil in U.S. Treasurys and French government bonds.
