Nasdaq hits record as dollar and Treasury yields climb

NEW YORK: Wall Street equities surged on Monday as mega-cap stocks advanced, Treasury yields hovered near multiyear peaks, the US dollar strengthened against the euro, and oil prices softened. The Nasdaq Composite achieved a fresh record high, with the Dow Jones Industrial Average up 0.18%, the S&P 500 gaining about 0.7%. Heavyweights Nvidia, Meta Platforms, and Microsoft fueled the rally.

European equities climbed despite French shares hitting a six-month low due to fiscal concerns, while Latin American markets lifted, driven by Brazil's presidential election results. Morgan Stanley Wealth Management's Lisa Shalett noted that the calm market was due to strong economic growth and AI's impact, while monitoring equity revisions, high-yield bond spreads, and dollar strength.

The euro rebounded slightly after plummeting to a 17-month low, pressured by concerns over France's debt and election uncertainties. French government budget deficit plans face parliamentary scrutiny, potentially weakening the euro. The dollar index rose 0.2%, supported by elevated Treasury yields, indicating a delayed dollar bull run.

US Treasury yields climbed 3.4 basis points to 5.31%, with global bond markets pressured by inflation, corporate issuances, and fiscal outlooks.