The Nasdaq Composite reached an all-time high during Monday's regular trading session, leading a broader rally in U.S. equities as technology stocks posted strong gains. The index closed the day 1.05% higher, outpacing the S&P 500, which gained 0.66%, and the Dow Jones Industrial Average, which rose 0.18%. Following the close, U.S. stock futures traded higher in the overnight session, with Dow futures up 0.15%, S&P 500 futures up 0.09%, and Nasdaq-100 futures up 0.07% as of 10:22 p.m. EDT.
Technology names drove the upward momentum, fueled by sustained demand for artificial intelligence infrastructure. Nvidia Corp. and Broadcom Inc. both rose more than 2% at the close, while Meta Platforms Inc. and Microsoft Corp. each gained more than 1%. SpaceX shares climbed more than 7% as investors focused on the company's first orbital Starship flight and its expanding AI ambitions.
While equity markets climbed, U.S. long-dated Treasury yields also spiked on Monday. The 10-year U.S. Treasury yield traded at 5.313%, and the 30-year Treasury bond yield stood at 5.67%. Lisa Shalett, investment chief at Morgan Stanley Wealth Management, noted in a report that bonds have experienced heightened volatility over the past six weeks. She attributed this instability to the potential for a new Federal Reserve policy framework, economic growth, and elevated oil prices linked to the ongoing Middle East conflict. Shalett observed that while intraday implied volatility has increased, recent moves have not yet reached the extreme levels seen before the 2022 equity bear market.
Bill Gross, known as the "Bond King," offered a contrasting perspective in a Financial Times op-ed last week, arguing that markets must prepare for the end of traditional stock market patterns and increased volatility in benchmark 10-year Treasury bonds. Gross stated that his view is to avoid owning bonds, with the exception of one-year Treasury bills currently yielding 4.55 percent.
Energy markets showed mixed signals, with oil prices pulling back in recent days despite Brent crude remaining above $100 a barrel. Brent crude futures expiring in December traded at $100.66 per barrel, while WTI crude futures expiring in November stood at $89.61 per barrel.
Individual stocks also saw significant movement overnight. SpaceX shares continued their climb amid reports that the company is exploring a natural gas pipeline in Florida to fuel Starship launches. USA Rare Earth Inc. rose in the overnight session following the appointment of Thras Moraitis as Chief Executive Officer and continued supply-chain expansion efforts. Constellation Energy Corp. gained more than 3% after reports indicated it is close to finalizing a multi-year power deal with Alphabet valued at approximately $1 billion.
Novavax Inc. shares surged about 20% at Monday's close, gaining from Sanofi's fall season launch of its Nuvaxovid vaccine and Vaxcyte's positive trial data for its pneumonia shot. Among exchange-traded funds, SPY, DIA, and QQQ all climbed overnight with "extremely bullish" sentiment, while the iShares 20+ Year Treasury Bond ETF (TLT) dipped 0.07% amid "bullish" sentiment.
Asian markets opened mixed on Tuesday, with South Korea's KOSPI trading lower while Japan's Nikkei 225, China's SSE Composite, and Australian stocks traded higher. Investors are now turning their attention to the U.S. Federal Open Market Committee meeting minutes scheduled for release Wednesday.