Nasdaq notches record high close as investors focus on earnings

The Nasdaq notched a record high close on Monday, lifted by Nvidia and Microsoft, as investors focused on a dip in oil prices and looked ahead to quarterly earnings reports.

It was the Nasdaq's second day of sharp gains after weaker-than-expected jobs data on Friday dampened expectations for an interest rate hike from the Federal Reserve at its policy meeting this month.

Oil prices slipped after crude exports from the Middle East increased and the Group of Seven nations pledged to boost supplies.

"With the economic data calendar being light and earnings about a week away, investors are really groping for anything positive to glom onto, and clearly they're looking at lower energy prices," said Art Hogan, chief ​market strategist at B. Riley Wealth.

Third-quarter earnings season kicks off next week with reports from large US banks.

Analysts on average see S&P 500 earnings jumping over 30% year over year, thanks largely to AI-related stocks, according to LSEG data.

Following jobs data on Friday that showed US job growth slowed more than expected in September, traders see a 24% chance of an interest rate hike at the Fed's October meeting, down from a 70% chance a week ago, according to CME's FedWatch tool.

PTC surged after France's Schneider Electric agreed to acquire the software firm in a $22.6 billion all-cash deal.

According to preliminary data, the S&P 500 gained 51.50 points, or 0.67%, to end at 7,774.22 points, while the Nasdaq Composite gained 289.42 points, or 1.06%, to 27,480.28. The Dow Jones Industrial Average rose 94.59 points, or 0.18%, to 51,274.32.

The Nasdaq's previous record high close was on September 22.

Optimism about robust corporate earnings has helped US stocks outperform global rivals in the last six months, despite rising Treasury yields and higher oil prices related to the US war with Iran.

RXO jumped after freight forwarding firm C.H. Robinson Worldwide agreed to buy the transportation broker in a stock-and-cash transaction for $5.8 billion. C.H. Robinson fell.

Cerebras Systems rose after OpenAI CEO Sam Altman said on social media the chip designer is a "close partner" and that the companies have "deep engagement pushing on the frontiers of speed."

(Reporting by Tharuniyaa Lakshmi and Shashwat Chauhan in Bengaluru and by Noel Randewich in San Francisco; Editing by Devika Syamnath and Rod Nickel)

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