Nasdaq notches record high close as investors focus on earnings

WASHINGTON, 6 OCTOBER 2026 —

The Nasdaq Composite Index surged to a record closing high on Oct 5, propelled by megacap technology shares, as investors seized on declining oil prices and receding expectations for a Federal Reserve interest rate increase this month.

The benchmark gained 1.05% to finish at 27,477.31 points, eclipsing its previous record set on Sept 22, while the S&P 500 climbed 0.66% to 7,773.95 points, leaving it roughly 0.3% shy of its own Aug 13 peak.

The Dow Jones Industrial Average added a modest 0.18% to close at 51,267.90 points, capping a session in which advancing issues outnumbered decliners on the S&P 500 by a 1.7-to-1 ratio.

The rally marked a second consecutive day of sharp gains for the tech-heavy index, building on momentum from weaker-than-expected US jobs data released on Oct 2 that showed September payroll growth slowing more than economists had forecast. That report prompted traders to slash the probability of a rate hike at the Fed's October policy meeting to 24%, down from 70% a week earlier, according to CME's FedWatch tool.

With the economic calendar light and third-quarter earnings season about a week away, market participants were "really groping for anything positive to glom onto, and clearly they're looking at lower energy prices," said Art Hogan, chief market strategist at B. Riley Wealth.

Artificial intelligence bellwether Nvidia led the advance, climbing 2.1% to its own record closing high and lifting its market capitalisation to US$5.76 trillion, equivalent to approximately S$7.3 trillion. Microsoft rose 1.5%, while Meta Platforms and Tesla each gained about 2%. The communication services sector climbed 1.14%, trailing only the materials sector's 1.22% gain among the ten advancing S&P 500 industry groups.

Ten of the eleven sector indexes finished higher, underscoring the breadth of the session's optimism even as trading volume came in relatively light at 16.8 billion shares on US exchanges, below the 20-session average of 17.3 billion shares.

Oil prices retreated during the session after crude exports from the Middle East increased and the Group of Seven nations pledged to boost supplies, providing a tailwind for equities that have contended with higher energy costs in recent months.

The S&P 500 has outperformed global rivals over the past six months despite rising Treasury yields and higher oil prices related to the US war with Iran, a resilience analysts attribute to optimism about robust corporate earnings. According to LSEG data, Wall Street consensus estimates project S&P 500 earnings jumping more than 30% year over year in the third quarter, driven largely by AI-related stocks.

Earnings season kicks off next week with reports from major US banks, setting the stage for a critical test of whether profit growth can justify elevated valuations. The S&P 500 posted 13 new highs and 20 new lows on the day, while the Nasdaq recorded 57 new highs against 243 new lows, a divergence that some technicians monitor for signs of underlying market health.

The index's record close came amid a backdrop of notable corporate deal activity that underscored strategic repositioning across the technology and logistics landscapes.

Software firm PTC surged 33% after France's Schneider Electric agreed to acquire the company in an all-cash transaction valued at US$22.6 billion, one of the largest technology acquisitions announced this year. In the logistics sector, RXO jumped more than 22% after C.H. Robinson Worldwide agreed to purchase the transportation broker in a stock-and-cash deal valued at US$5.8 billion; shares of C.H. Robinson fell nearly 11% in response.

The contrasting moves highlighted how investors are rewarding acquisition targets while scrutinising the strategic rationale and integration risk for buyers.

Chip designer Cerebras Systems rose 9% after OpenAI chief executive Sam Altman said on social media that the company is a "close partner" and that the two firms have "deep engagement pushing on the frontiers of speed." The endorsement from one of the most closely watched figures in artificial intelligence amplified investor enthusiasm for semiconductor plays beyond the established giants, reflecting a broadening of the AI investment thesis into specialised hardware and infrastructure providers.

The market's focus now shifts to the impending deluge of quarterly results, which will either validate or challenge the earnings optimism that has underpinned the recent outperformance of US equities. With the Fed's next policy decision still weeks away and the jobs report having reset rate expectations, corporate fundamentals have reclaimed centre stage.

Traders will parse bank earnings for clues on consumer health, credit quality, and the trajectory of net interest margins, while technology reports later in the season will test whether AI-driven revenue growth can sustain the sector's leadership.

For regional investors, the Nasdaq's record close and the accompanying rotation into materials and communication services offer a gauge of global risk appetite that often reverberates through Asian markets. The decline in oil prices, if sustained, could ease inflationary pressures across import-dependent economies in Southeast Asia, while the Fed's dovish repricing may provide breathing room for central banks in the region to maintain or ease policy settings.

The Schneider Electric-PTC deal, valued at US$22.6 billion, also signals continued appetite for cross-border technology consolidation that could spur similar activity involving Asian strategic buyers or targets.

As the earnings window opens, the market's ability to extend gains from these elevated levels will depend on whether companies can deliver not just headline beats but forward guidance that supports the more than 30% profit growth analysts have pencilled in.

The light volume accompanying Monday's record suggests caution persists beneath the surface enthusiasm, with participants awaiting concrete evidence that the AI investment cycle and broader economic resilience can justify valuations that have priced in considerable optimism. The next two weeks of bank and technology reports will likely determine whether the Nasdaq's latest milestone marks a sustainable breakout or a pause before the next directional move.

Related: Nvidia · Federal Reserve · Art Hogan