The Nasdaq Composite gained 1.05% to close at 27,477, marking a new high despite a global bond sell-off. The S&P 500 rose 0.66% to 7,774, while the Dow Jones Industrial Average added 0.18% to 51,268. These moves occurred as tech optimism overshadowed elevated Treasury yields, with the 10-Year Treasury yield rising 0.03% to 5.31% and gold prices gaining 0.10% to $4,138.68.
Most sectors advanced during the trading session, with industrials and communication stocks surging. Real estate stocks slipped slightly. Increased risk appetite followed last week's softer-than-expected jobs data, leading traders to factor in a reduced likelihood of a further Federal Reserve rate hike this month.
Individual stock movements were driven by company-specific news and sector speculation. Vaxcyte shares soared over 30% following reports of positive late-stage vaccine success, while Genmab gained almost 11% after announcing positive lymphoma drug data. PTC shares climbed after reports of a $22.6 billion buyout offer. Taiwan Semiconductor Manufacturing gained as investors digested reports that the company was in discussions with Elon Musk's Terafab chip factory.
Nvidia, a key player in artificial intelligence infrastructure, saw its shares gain as speculation mounted that its market cap may soon reach an unprecedented $6 trillion. Strong earnings and sustained demand for AI hardware have countered worries that the current boom could collapse similarly to the dot-com era.
With earnings season approaching, analysts maintain high expectations for corporate performance. Data from FactSet show that nearly 60% of ratings for S&P 500 companies are Buy. A record 72 companies have issued positive third-quarter guidance. These high expectations present a mixed outlook for investors, as optimism is reassuring but means companies can beat forecasts and still disappoint.