Tech Momentum Boosts Nasdaq Despite Rising Treasury Yields
The Nasdaq Composite rose 1.05% to 27,477, while the S&P 500 gained 0.66% to 7,774 and the Dow Jones Industrial Average added 0.18% to 51,268. Tech optimism drove these gains despite higher Treasury yields. Gold prices increased 0.10% to $4,138.68, and the 10-Year Treasury yield climbed 0.03% to 5.31%. Most sectors saw gains, with industrials and communication stocks leading, while real estate dipped slightly.
Vaxcyte shares surged over 30% following positive late-stage vaccine trial results, and Genmab rose almost 11% after announcing promising lymphoma drug data. PTC also climbed on reports of a $22.6 billion buyout offer. Taiwan Semiconductor Manufacturing saw gains as investors reacted to news of potential discussions with Elon Musk's Terafab chip factory.
Equities continued their upward trend, with the Nasdaq reaching another high despite a global bond sell-off. Investors showed increased risk appetite after last week's softer-than-expected jobs data, reducing the likelihood of a Federal Reserve rate hike this month. Nvidia shares gained amid speculation that its market cap could soon hit $6 trillion, though concerns about an AI boom bubble have been tempered by strong earnings and sustained demand for AI infrastructure.
With earnings season approaching, analysts have high expectations, with nearly 60% of S&P 500 companies rated as Buy. A record 72 companies have issued positive Q3 guidance, though high expectations could make it challenging for companies to meet investor hopes.