Tech heavyweights push Nasdaq to record high close

On Monday, the Nasdaq closed at a record high, driven by Nvidia and Microsoft's performance, as investors focused on falling oil prices and anticipated earnings reports. This marked the Nasdaq's second consecutive day of significant gains, following weaker-than-expected jobs data on Friday that reduced expectations for a Federal Reserve interest rate increase this month.

The S&P 500 also experienced gains, nearing its August 13 record high close, while the Dow remained slightly lower. AI giant Nvidia surged 2.1 percent and achieved a record-high close, increasing its market value to $5.76 trillion. Microsoft gained 1.5 percent, while Meta Platforms and Tesla saw about 2 percent growth each. The Nasdaq's earlier record was set on September 22, as oil prices dropped due to increased Middle Eastern exports and a G7 commitment to boost supplies.

With minimal economic data and earnings reports approaching in a week, investors turned to positive factors, particularly lower energy prices. Art Hogan, chief market strategist at B Riley Wealth, noted that investors are actively seeking optimistic developments, with AI-related stocks expected to drive S&P 500 earnings over 30 percent year-over-year.

After jobs data on Friday revealed a slower-than-expected job growth in September, traders believed the probability of an interest rate hike at the Fed's October meeting had dropped to 24 percent, down from 70 percent a week prior. The Nasdaq climbed 1.1 percent to 27,477, the S&P 500 rose 0.7 percent to 7,773, and the Dow increased 0.2 percent to 51,267.