The US markets ended higher on Monday with Nasdaq notching a record high close supported by Nvidia and Microsoft, as investors focused on a dip in oil prices and looked ahead to quarterly earnings reports. Besides, falling oil prices offset concerns regarding elevated Treasury yields. The 10?year Treasury continued to head higher on Monday after climbing to its highest level in more than two decades last week, stoking concern that higher borrowing costs could continue to weigh on equities even if the Fed opts to keep policy steady. Meanwhile, oil prices fell after the G7 said it would release fuel reserves.
On the economic data front, US service sector activity accelerated sharply in September, with the S&P Global services PMI jumping to 58.8 and the composite PMI rising to 58.4, both marking the strongest expansions in more than five years. The services index posted a fourth consecutive monthly gain as business activity surged on the back of the fastest rise in new orders in four?and?a?half years. The composite PMI showed similarly robust momentum across both manufacturing and services, with output rising in line with a rapid increase in new business. Besides, the Institute for Supply Management said US services activity continued to expand in September, with the Services PMI easing slightly to 54.9 from 55.4 but still marking a 27th straight month in growth territory. The ISM said business activity remained solid despite a softer reading, while new orders stayed strong at 59.8, only marginally below August’s level.
Dow Jones Industrial Average rose by 90.94 points or 0.18 percent to 51,267.90, Nasdaq jumped by 286.45 points or 1.05 percent to 27,477.31 and S&P 500 added 51.23 points or 0.66 percent to 7,773.95.
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