Nasdaq hits record high thanks to tech stocks, despite rising bond yields

The big technology stocks are once again setting the tone on Wall Street. Nvidia, Meta and Microsoft are pulling the index to a new high. Rising bond yields are not slowing investors' buying mood.

Driven by gains in tech heavyweights, the US technology index Nasdaq reached a new record high on Monday. It ended trading with an increase of 1.1 percent to 27,477 points. The Dow Jones index of standard stocks made up for initial losses during trading and was slightly firmer at 51,267 points. The broader S&P 500 also gained momentum, rising 0.7 percent to 7,773 points. "The AI ​​and tech story continues to drive the market. It is so strong that it can withstand headwinds from higher interest rates," said Dennis Dick, analyst at Triple D Trading.

Large technology stocks in particular set the tone: Nvidia shares climbed again by around two percent. The shares of Meta Platforms, Microsoft and Tesla rose between 1.3 and around two percent. Before the end of the week, weaker than expected data from the US labor market had dampened expectations that the US Federal Reserve could raise interest rates this month.

The purchasing managers' index for service companies fell to 54.9 points from 55.4 points in the previous month, according to the monthly survey by the Institute for Supply Management (ISM) published on Monday. The further the barometer lies above the 50 point threshold, the more growth it signals. The slowdown in the services sector further dampened expectations of a rate hike by the US Federal Reserve in October. Traders now see the probability of an interest rate break at 80 percent.

Markets in check continued to keep bond yields near multi-year highs. The yield on the ten-year US government bond was most recently at 5.328 percent. The main concerns were the rising debt burden in the USA, extensive bond issues and high energy costs. On the other side of the Atlantic, the focus was primarily on the strained public finances in France.

After the euro had already fallen by around 2.5 percent last month, it temporarily slipped by up to 0.8 percent to $ 1.1162 on Monday. The fall in prices supported the dollar, which also benefited from increased yields on US government bonds. The dollar index rose 0.3 percent to 102,217 points.

Takeovers caused strong price movements for individual stocks. PTC shares shot up by a third after French company Schneider Electric submitted a $22.6 billion purchase offer. In Paris, however, the offer was met with anger from investors. The French technology group lost around ten percent. RXO shares rose more than 20 percent after carrier C.H. Robinson announced the purchase of the transport broker for $5.8 billion. In contrast, C.H. Robinson shares fell a good ten percent.