NEW YORK – October 5, 2026 (STL.News) U.S. stocks finished higher Monday, with the Nasdaq Composite closing at a record as gains in major technology companies helped Wall Street advance despite another increase in Treasury yields.
Preliminary closing data reported by Reuters showed the S&P 500 rising 0.67% to 7,774.22, the Nasdaq Composite gaining 1.06% to 27,480.28 and the Dow Jones Industrial Average advancing 0.18% to 51,274.32.
The Nasdaq’s previous record closing high was set Sept. 22, according to Reuters.
The Associated Press independently reported the same overall market direction, rounding Monday’s gains to 0.7% for the S&P 500, 1.1% for the Nasdaq and 0.2% for the Dow. AP also reported that the S&P 500 finished within 0.3% of its all-time high.
U.S. Stock Market Snapshot
- S&P 500: 7,774.22 — up 0.67%
- Dow Jones Industrial Average: 51,274.32 — up 0.18%
- Nasdaq Composite: 27,480.28 — up 1.06%
- Nasdaq: Record closing high
- 10-year Treasury yield: 5.31%, up from 5.28% Friday
- Brent crude: $100.32 per barrel, down 1.9%
The session extended Friday’s advance, when weaker-than-expected U.S. employment data reduced expectations that the Federal Reserve would raise interest rates again at its October policy meeting.
Technology Stocks Lead the Rally
Large technology companies contributed to Monday’s gains.
Reuters identified Nvidia and Microsoft among the stocks supporting the Nasdaq’s record-setting session. Meta Platforms and Tesla also advanced.
Technology’s strength was particularly significant because it came despite elevated long-term interest rates.
The 10-year Treasury yield climbed to 5.31% Monday from 5.28% late Friday, according to AP. It approached 5.35% earlier in the session and remained near its highest level since 2002.
Higher Treasury yields can pressure stocks because they raise borrowing costs across the economy while increasing returns on government securities.
Growth stocks can be especially sensitive to higher rates because much of their valuation is based on earnings expectations well into the future.
Monday’s performance demonstrated that investors remained willing to buy major technology stocks despite that pressure.
S&P 500 Moves Closer to Record
The technology-heavy Nasdaq wasn’t the only major index approaching historic territory.
The S&P 500’s 0.7% advance left the benchmark index about 0.3% from its all-time high, according to AP.
That leaves Wall Street near record territory even as investors confront unusually high Treasury yields, elevated energy prices and uncertainty about the Federal Reserve’s next move.
The Dow posted a much smaller gain Monday, underscoring the continuing strength of technology and growth shares relative to some other parts of the market.
Fed Expectations Change After Jobs Report
Friday’s employment report continues to influence Wall Street.
U.S. job growth slowed more than expected in September, causing traders to reduce expectations for another Federal Reserve interest-rate increase this month.
Reuters reported that traders were assigning a 24% probability of an October rate increase, down from approximately 70% a week earlier, based on CME FedWatch data.
That shift has helped support equities, particularly growth stocks that can benefit when expectations for future interest rates decline.
However, Monday’s rise in longer-term Treasury yields shows that the interest-rate picture remains complicated.
The Federal Reserve’s benchmark interest rate and longer-term market rates do not necessarily move together. Investors continue to weigh inflation, economic growth, federal borrowing requirements and energy prices when determining Treasury valuations.
Services Report Keeps Inflation in Focus
Monday also brought new information about the U.S. economy.
The Institute for Supply Management reported continued expansion in the services sector during September, marking a 27th consecutive month of growth, according to AP.
However, growth was somewhat weaker than economists expected.
The report also showed faster increases in prices paid by services businesses for materials and services, adding another inflation concern for investors.
That combination — continued economic expansion accompanied by persistent price pressure — helps explain why Treasury yields remain elevated even as expectations for an immediate Federal Reserve rate increase have declined.
The Fed is attempting to control inflation without causing an unnecessarily severe slowdown in economic activity or employment.
Upcoming economic reports will therefore remain important for both stock and bond markets.
Oil Falls but Remains Above $100
Oil prices declined Monday after another volatile session.
Brent crude settled at $100.32 per barrel, down 1.9%, according to AP. During the session, Brent moved between roughly $100 and $103.
Reuters reported that oil prices were pressured by increased crude exports from the Middle East and commitments by Group of Seven nations to increase supplies.
Despite Monday’s decline, oil remains at levels that could contribute to inflation concerns.
Higher crude prices can increase transportation and production expenses for businesses while raising energy costs for consumers.
Oil prices have also contributed to recent pressure in the Treasury market as investors assess the potential effect of energy costs on inflation.
For Wall Street, a sustained decline in crude could remove some inflationary pressure. A renewed increase could complicate expectations for Federal Reserve policy.
PTC Surges on Schneider Electric Deal
Corporate dealmaking provided another catalyst Monday.
Shares of PTC jumped 33.6% after Schneider Electric agreed to acquire the U.S. software company in an all-cash transaction valued at approximately $22.6 billion, according to AP and Reuters.
The acquisition became one of the most prominent corporate developments of Monday’s session.
The deal also contributed to broader strength among software companies.
RXO Jumps on C.H. Robinson Acquisition
Another major acquisition boosted shares of transportation broker RXO.
C.H. Robinson Worldwide agreed to acquire RXO in a cash-and-stock transaction valued at approximately $5.8 billion, according to Reuters.
AP reported that RXO shares surged 22.8% following the announcement, while C.H. Robinson shares dropped 10.8%.
The transaction values RXO at $30.25 per share based on the reference price used in the deal.
The two large acquisitions provided additional support for a market already benefiting from technology-sector strength.
Earnings Season Moves Into Focus
Investors are now preparing for the next major test for stock valuations: third-quarter corporate earnings.
Major U.S. banks are scheduled to begin reporting results next week.
Reuters reported that analysts surveyed by LSEG expect earnings for S&P 500 companies to rise more than 30% from a year earlier, with AI-related companies driving a significant share of that projected growth.
Those expectations help explain why stocks have remained resilient despite elevated interest rates.
Strong corporate profits can justify higher equity valuations even as borrowing costs rise.
But high expectations also increase the consequences of disappointing results.
Companies reporting weaker-than-expected earnings or cautious forecasts could face significant selling pressure, particularly after the market’s strong advance.
Nasdaq Sets the Pace
Monday’s results again demonstrated the influence of technology companies over the broader U.S. market.
The Nasdaq gained 1.06%, substantially outperforming the Dow’s 0.18% advance.
Nvidia, Microsoft and other major technology companies helped propel the Nasdaq to its first record closing high since Sept. 22.
The S&P 500 also moved closer to its record.
That combination suggests investor enthusiasm for technology and artificial intelligence remains strong even as the macroeconomic environment presents substantial challenges.
What Investors Should Watch
Three factors are likely to remain particularly important for Wall Street in the days ahead.
Treasury yields remain a major risk. The 10-year yield at 5.31% is near levels not seen in decades and represents a significantly higher hurdle for equity valuations.
Oil prices remain another important variable. Brent’s decline to $100.32 provided some relief Monday, but crude remains high enough to influence inflation expectations.
Finally, corporate earnings will increasingly determine whether record and near-record stock prices can be justified by actual profit growth.
For Monday, however, technology prevailed over those concerns.
The S&P 500 finished at 7,774.22, up 0.67%. The Dow Jones Industrial Average closed at 51,274.32, up 0.18%. The Nasdaq Composite finished at 27,480.28, up 1.06%, and set a record closing high.
Wall Street enters the remainder of the week with stocks near historic levels, but Treasury yields, inflation, energy prices, and upcoming earnings reports provide important tests for the rally.
Market Data Note: Exact S&P 500, Dow Jones Industrial Average and Nasdaq Composite levels are based on preliminary closing data reported by Reuters on Oct. 5, 2026. AP independently confirmed the respective rounded percentage changes and the Nasdaq’s record close. The 10-year Treasury yield and Brent crude settlement are from AP’s post-close market report.
Disclaimer: This article is provided for informational and news purposes only and does not constitute investment, financial, or trading advice.
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