U.S. stocks finished higher on Monday, with the Nasdaq Composite setting a new record as technology shares led the way. Investors found comfort in a pullback in oil prices and in expectations that the Federal Reserve is less likely to raise interest rates this month, after Friday’s jobs report showed hiring slowed more than expected in September. With few economic reports on the calendar, traders focused on deals and on the third-quarter earnings season that begins next week.
What Moved Markets
The Dow Jones Industrial Average gained 90.94 points, or 0.18%, to close at 51,267.90. The S&P 500 rose 51.23 points, or 0.66%, to 7,773.95, putting it roughly half a percent below its all-time high from August and up almost 14% for 2026. The Nasdaq Composite led the major indexes, climbing 286.45 points, or 1.05%, to 27,477.31, a record close.
Two themes drove the session. First, oil prices slipped after crude exports from the Middle East increased and the Group of Seven nations pledged to boost supplies. Lower energy costs ease worries about inflation, which matters because inflation helps determine how high interest rates need to go. Second, the softer jobs data cut the odds of a Fed rate hike at its October meeting to about 24%, down from roughly 70% a week ago, according to the CME FedWatch tool. Lower expected rates tend to help growth stocks, especially in technology.
The rally was broad. Ten of the 11 S&P 500 sectors finished higher, led by materials and energy, and advancing stocks outnumbered decliners by about 2.4 to 1 within the S&P 500.
Notable Movers
PTC (PTC) surged about 34% after France’s Schneider Electric agreed to acquire the software company in an all-cash deal valued at $22.6 billion.
RXO (RXO) jumped roughly 29% after C.H. Robinson Worldwide (CHRW) agreed to buy the transportation broker in a stock-and-cash deal worth $5.8 billion. Shares of C.H. Robinson, the buyer, fell about 12%. It is common for an acquirer’s stock to dip when investors question the price paid.
Cerebras Systems (CBRS) gained about 8% after OpenAI CEO Sam Altman called the chip designer a “close partner” with “deep engagement” on pushing the speed of AI systems.
Among large technology names, Nvidia (NVDA) rose about 1.6%, Microsoft (MSFT) about 1.5%, Meta Platforms (META) about 2.1%, and Tesla (TSLA) about 2.5%, helping power the Nasdaq to its record.
Looking Ahead
The focus now shifts to earnings. Large U.S. banks open the third-quarter reporting season next week, and analysts on average expect S&P 500 profits to rise more than 30% from a year earlier, driven largely by AI-related companies. Investors will watch whether results and company outlooks justify those lofty expectations. Also keep an eye on oil prices, Treasury yields, and any further economic data that shifts expectations for the Fed’s October decision. As always, one day’s move does not make a trend, so long-term investors may want to stay focused on their broader plan.