The Nasdaq Composite surged to a fresh record high on Monday, climbing 1.05% to close at 27,477.31, as technology stocks powered a broad rally even as Treasury yields moved higher. The tech-heavy index touched an intraday peak of 27,544.07 during the session, underscoring the strength of buying interest throughout the day.
The gains were not confined to the Nasdaq. The S&P 500 climbed 0.66% to close at 7,773.95, while the Dow Jones Industrial Average posted a more modest advance of 90.94 points, or 0.18%, ending the day at 51,267.90. All three major indexes finished in positive territory, extending a string of strong sessions for U.S. equities heading into the fourth quarter.
Nvidia Leads Tech Rally
Nvidia was a standout performer, with shares rising about 2.12% to close at a new all-time high for the first time since May. The chipmaker’s rebound reflects renewed investor appetite for artificial intelligence-related stocks, a theme that has repeatedly driven market sentiment throughout the year.
Other major technology and growth names joined the advance. SpaceX jumped more than 7%, a standout move even by the standards of a strong day for tech. Meta Platforms ticked up almost 2%, while Microsoft added more than 1%. Together, the moves reinforced the sense that large-cap technology stocks remain the market’s primary engine of growth.
What made Monday’s rally notable was that it came even as U.S. Treasury yields rose. Historically, higher yields can weigh on growth and technology stocks because they raise the relative cost of borrowing and reduce the present value of future earnings. On Monday, however, traders appeared willing to look past higher borrowing costs, focusing instead on corporate strength and the broader economic outlook.
Fed Minutes and Jobs Data in Focus
Much of the market’s attention is now turning toward the Federal Reserve. Investors were looking ahead to minutes from the Federal Reserve’s September meeting, due Wednesday, for clues on the path of interest rates. Those minutes could offer investors a clearer sense of how policymakers are weighing inflation risks against signs of a cooling labor market.
That labor market backdrop was very much in focus following a weaker-than-expected jobs report released the prior Friday. The soft data eased concerns about potential interest rate hikes from the Federal Reserve, giving investors more confidence that the central bank may hold off on tightening monetary policy further. Weaker job growth is often interpreted by markets as reducing inflationary pressure, which in turn lowers the odds of additional rate increases — a dynamic that has helped fuel the recent run-up in stock prices.
Overseas Markets Mixed, Shutdown Fears Fade
Markets in Asia offered a mixed picture overnight. Japan’s Nikkei 225 closed 2.40% higher at 69,946.86, tracking the upbeat mood from Wall Street. Australia’s S&P/ASX 200, by contrast, ended essentially flat at 8,686.40, showing less momentum than its regional peers.
Trading volumes and participation across Asia were also affected by holidays. China’s market was closed for Golden Week, with trading not set to resume until October 8. South Korea’s market was closed for a national holiday as well, limiting the amount of regional trading activity feeding into Monday’s global picture.
Beyond corporate earnings and Fed policy, investors have also been monitoring Washington for signs of fiscal disruption. A feared October government shutdown did not happen after President Trump signed a continuing resolution into law on September 2, 2026. The measure effectively removed a source of uncertainty that had loomed over markets in recent weeks, as shutdowns can disrupt economic data releases, delay government services, and inject volatility into financial markets.
Funding Fight Pushed Past Midterms
The continuing resolution keeps federal agencies funded at current levels through December 11, 2026, pushing the funding fight past the November midterm elections. That timeline effectively removes the threat of a shutdown from the political calculus ahead of the vote, giving lawmakers additional breathing room before the next funding deadline arrives.
The measure cleared the House by a wide margin. The House approved the Senate’s December 11 funding date by a bipartisan margin of 370-48 after returning to session in early September. Such a lopsided vote signaled unusually strong bipartisan support for avoiding a shutdown, even amid broader political divisions in Washington.
For now, markets appear to be drawing confidence from the combination of resolved fiscal uncertainty, a cooling labor market that reduces the odds of near-term rate hikes, and continued strength in technology shares. With the Fed’s September meeting minutes due Wednesday, investors will be watching closely for any signals that could alter the current trajectory. Until then, record highs in the Nasdaq and Nvidia stand as the clearest signs yet of the market’s resilience, even as yields tick upward in the background.
- Nasdaq Composite: 27,477.31, up 1.05%
- S&P 500: 7,773.95, up 0.66%
- Dow Jones Industrial Average: 51,267.90, up 0.18%
- Nikkei 225: 69,946.86, up 2.40%
- S&P/ASX 200: 8,686.40, flat
