Nasdaq Hits Record High as Tech and Chinese Assets Rally
The Nasdaq Composite hit a fresh intraday record on October 5, nearing the 27,400 level as U.S. stocks opened higher. Tech giants led the charge, with Nvidia climbing over 1% to approach its all-time high. Chinese assets also rallied, with the Nasdaq Golden Dragon China Index up 1.34%, driven by gains in Alibaba and JD.com. Biotech firm Vaxcyte surged more than 60% after its pneumococcal vaccine met late-stage clinical trial targets.
The AI theme continued to dominate market sentiment, with SpaceX, Meta, Tesla, Microsoft, and Apple all posting gains. The Nasdaq was up 0.72%, the S&P 500 gained 0.42%, while the Dow Jones Industrial Average slipped 0.16%. TSMC reached a new record high, with its market capitalization hitting $2.5 trillion.
Wall Street remains divided on the sustainability of the AI-driven rally. DBS Group argues that tech stocks are far from bubble territory, while Morgan Stanley warns of potential pullbacks if bond volatility stays elevated. OPEC+ kept production quotas steady, but oil prices faced pressure, with Brent crude hovering near $101 per barrel.
The Federal Reserve's September meeting minutes are due this week, with markets watching for guidance on future rate hikes. Geopolitical tensions in the Middle East persist, while Bitcoin briefly approached $86,900 before settling around $86,000. Investors are now focusing on the upcoming third-quarter earnings season.