Nasdaq Defies Rising Yields and Stronger Dollar with Crude-Linked Surge

Nasdaq futures have been pushing to fresh multi-week highs, despite a backdrop that would normally be hostile for long-duration stocks.

The rise in Treasury yields and US dollar strength would typically weigh on tech stocks, but instead they've surged by around 1.8% over the past fortnight.

A key factor behind this outperformance is the falling price of crude oil, which has seen its correlation with Nasdaq futures fall to -0.75, near the extreme lower tail of its historical distribution.

The Philadelphia Semiconductor Index (SOX) has gained around 7% since September 14, while industrials have been broadly flat, indicating a rotation away from cyclical sectors toward more structural earnings plays.