Nasdaq Sets Record as Meta Surges; Oil Drops, Fed Eyes More Hikes
The Nasdaq hit an all-time high Monday, powered by Meta and chip stocks, while crude oil fell nearly 5% and Fed officials signaled rates may rise further.
The Nasdaq Composite closed at a record high Monday as Meta shares surged more than 10%, lifting chipmakers including Intel, AMD, and Arm in a broad AI-driven rally, even as oil prices slid sharply and Federal Reserve officials kept pressure on inflation hawks. October light crude dropped 4.87% to $95.42, while Brent crude hovered near $100.05, easing fears of an immediate energy-driven price spike.
Three Fed policymakers used Monday's session to hammer home a hawkish message. Boston Fed President Collins indicated she expects a second rate hike this year before holding rates steady through 2027. St. Louis Fed President Musalem went further, stating interest rates will likely need to rise even more to bring inflation to heel — a stance that kept traders on edge despite the equity market's celebratory tone.
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The U.S. dollar finished the session mixed but leaning higher against most major peers. The greenback posted its biggest gain against the Japanese yen, with USDJPY climbing 0.34% to near 157.39. The Canadian dollar matched that slide, with USDCAD also rising 0.34% to around 1.4034, even as Bank of Canada Governor Macklem warned that U.S. tariffs could roughly halve Canada's fourth-quarter economic growth to below 1%.
Treasury yields painted a nuanced picture, with the curve flattening as the 2-year yield edged up roughly 0.75 basis points to 4.75% while the 5-year slipped about 2.5 basis points to 4.83% and the 10-year sat near 4.95%. The divergence suggests bond markets are pricing in near-term policy tightening while moderating longer-run growth expectations — a tension that could define trading conditions heading into the final months of the year.
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