Nasdaq Surges as Dow Snaps Three-Week Losing Streak Amid Rising Yields

The US stock market showed a mixed performance last week, with the Dow Jones Industrial Average (DJIA) and S&P 500 indices gaining modestly, while the Nasdaq Composite surged ahead.

The DJIA rose 0.9% to close at 51,828.59 on Friday, September 25, snapping its three-week losing streak. The S&P 500 also gained 0.5%, closing at 7,743.41. However, the Nasdaq Composite was the standout performer, surging 0.9% to close at 27,068.72.

The rally in the tech-heavy Nasdaq was driven by a powerful rebound in semiconductor and AI-related stocks, with Nvidia rising over 4% for the week, Broadcom and AMD each gaining over 3%. The Philadelphia Semiconductor Index (SOX) climbed 14% over a six-session winning streak before pulling back on Wednesday.

The 10-year Treasury yield continued its upward climb, touching an intraday peak of 5.225%, its highest level since July 2007. This surge in yields weighed on small-cap stocks, with the Russell 2000 falling 0.4% for the week. The Dow Composite Average also declined 0.4%, driven by weakness in utilities and transports.