US stocks advanced on Monday, with the Nasdaq Composite reaching a fresh record high as technology shares rallied despite another rise in Treasury yields.
The Nasdaq gained 1.05% to close at a record 27,477.31, after reaching an intraday high of 27,544.07. The S&P 500 rose 0.66% to 7,773.95, while the Dow Jones Industrial Average added 90.94 points, or 0.18%, to 51,267.90.
Artificial intelligence-related stocks led the gains. SpaceX jumped more than 7%, while Nvidia and Tesla rose around 2% each. Meta Platforms gained nearly 2% and Microsoft advanced more than 1%.
Bond yields continued to climb, with the benchmark US 10-year Treasury yield rising above 5.3% and the 30-year yield approaching 5.7%, as investors weighed persistent inflation risks and the outlook for Federal Reserve interest rates.
Fresh economic data showed continued expansion in the US services sector, with the ISM purchasing managers’ index easing to 54.9 in September, broadly in line with expectations.
Attention now turns to the minutes from the Fed’s September meeting for further clues on the outlook for interest rates.
Oil prices declined, with Brent crude falling 1.89% to US$100.32 a barrel and West Texas Intermediate slipping 1.8% to US$89.43.
Australian Market Outlook
Australian shares are set to open higher, with S&P/ASX 200 futures up 27 points, or 0.3%, to 8,750.
The positive lead from Wall Street provides support for the local market, although elevated US bond yields remain a potential headwind.
Locally, attention turns to Westpac’s October consumer confidence index, due at 10.30am AEDT, followed by ANZ-Indeed job advertisements for September at 11.30am.
Investors will also monitor US Treasury auctions later this week for indications of demand for government debt amid rising yields.
