Nasdaq Sets New Record as Treasury Yields Surge
U.S. Treasury yields reached new highs on the 5th local time, but the major New York stock indexes still managed to climb higher. The Dow Jones Industrial Average closed at 51,267.90, up 0.18%, while the Standard & Poor's 500 index gained 0.66% to 7,773.95. The Nasdaq Composite surged 1.05% to 27,477.31, setting a new record by surpassing its previous high from September 22.
The rise in Treasury yields was driven by concerns that the Federal Reserve may keep interest rates elevated for longer due to persistent inflation. The yield on the 10-year note hit 5.347%, its highest level since April 2002, while the 30-year yield touched 5.702%, the highest since May 2002.
Despite the yield surge, stocks advanced thanks to strong performance in artificial intelligence-related shares and big technology companies. SpaceX led the charge with a 7.63% surge after Morgan Stanley maintained its overweight rating and set a price target of $300. Elon Musk also announced talks with Taiwan's TSMC on semiconductor production cooperation.
Major tech stocks across the board saw gains, including Meta Platforms (up 1.90%), Microsoft (up 1.48%), Nvidia (up 2.12%), and Tesla (up 2.20%). Nvidia extended its gains, logging a record closing high, as strong expectations for AI company earnings growth provided support.