FILE PHOTO: The Nasdaq Market site is seen on the day that shares of Truth Social and Trump Media & Technology Group start trading under the ticker “DJT”, outside the Nasdaq Market site in New York City, U.S., March 26, 2024. REUTERS/Brendan McDermid/File Photo
New York, United States — The Nasdaq powered to a fresh record Monday behind gains by tech giants, shrugging off an increase in US Treasury yields that analysts tied to shifting election expectations.
Shares of Apple, Amazon and Microsoft all posted gains of at least two percent, adding to a buoyant 2024 so far for tech companies.
The tech-rich Nasdaq Composite Index jumped 0.8 percent to 17,879.30.
READ: Nasdaq sets another record as Wall Street wins back earlier losses
The Dow Jones Industrial Average advanced 0.1 percent to 39,169.52, while the broad-based S&P 500 climbed 0.3 percent to 5,475.09.
US bond yields climbed on Monday, a dynamic that typically sees a drag on equities.
Cresset Capital’s Jack Ablin attributed the rise in yields to a bet that Donald Trump will become the next US president, leading to an extension of tax cuts and pushing back Federal Reserve interest rate cuts.
“The rates are long and really going up in response to the shift in populism here and abroad, mostly here with the likelihood of Trump becoming president,” Ablin said.
“It looks like a higher for longer trade” in terms of US monetary policy, Ablin added.
READ: S&P 500, Nasdaq at records despite Fed seeing fewer rate cuts in 2024
A survey of manufacturers from the Institute for Supply Management’s pointed to contraction, lagging expectations.
Among individual companies, Boeing rose 2.7 percent after announcing a deal to acquire subcontractor Spirit AeroSystems for $4.7 billion, a move the aviation giant says will boost efforts to improve quality control. Spirit jumped 3.4 percent.
Large banks rose after announcing a string of dividends and share repurchases late Friday after passing annual Federal Reserve stress tests.
JPMorgan Chase gained 1.6 percent, Goldman Sachs won 2.5 percent and Bank of America 0.6 percent.