Nasdaq hits fresh all-time high to start the week; Dow struggles as traders eye yields: Live updates

The Nasdaq Composite sailed to a fresh all-time high as traders watched U.S. Treasury yields and digested new U.S. economic data.

The Nasdaq Composite was up more than 0.7% to hit as much as $27,399.81, or its highest level ever. Meanwhile, the Dow Jones Industrial Average last traded down 87 points, shedding nearly 0.2%. The S&P 500 ticked up about 0.4%.

The benchmark 10-year Treasury note yield was last up about 2 basis points to 5.298%, while the 30-year was rose 3 basis points at 5.659%. Both yields surged to multiyear highs in recent weeks, as traders fretted that inflation would lead the Fed to keep rates higher for longer.

Stocks and bonds moved as traders processed the Institute for Supply Management’s latest report on economic growth in the services sector. The ISM report showed that the Purchasing Manager’s Index grew 54.9% in September, or roughly in line with expectations. However, that figure came in modestly below the index’s rate of growth for the previous month.

Investors are now turning their attention to other sources of information. On Wednesday, the Fed will release notes from its September meeting, potentially shedding light on its decision to hike rates by a quarter of a percentage point last month.

Traders also monitored oil prices, which were lower on Monday. Brent crude futures shed more than 0.7% to trade at $101.51 a barrel, while West Texas Intermediate crude was trading down 1% at $88.53 a barrel.

Stocks are coming off a week defined by surging Treasury yields and a surprisingly lackluster jobs report that helped ease concerns about another Fed rate hike this month. The data provided some relief after a week of pressure from rising bond yields.

“Despite a growing list of headwinds (e.g., geopolitics, higher rates), global equities have climbed c12% YTD and are just below all-time highs,” wrote Citi strategist Beata Manthey. “Does this relative calm suggest equity fundamentals will prove resilient to ongoing macro shocks, or will stocks eventually need to correct to more accurately reflect the current risk backdrop? While uncertainty remains high, we still find ourselves in the ‘resilience’ camp for now.”