Tech Rally Boosts Nasdaq as Treasury Yields Climb
The Nasdaq Composite closed up 1.05% at 27,477, while the S&P 500 rose 0.66% to 7,774, and the Dow Jones Industrial Average gained 0.18% to 51,268. The gains were driven by tech sector momentum, which overshadowed rising Treasury yields.
Gold prices edged up 0.10% to $4,138.68, and the 10-year Treasury yield increased 0.03% to 5.31%. Most sectors saw gains, with industrials and communication stocks leading the charge, while real estate experienced a slight decline.
Among the biggest movers, Vaxcyte surged over 30% following positive late-stage vaccine trial results, and Genmab climbed nearly 11% after announcing encouraging data for a lymphoma drug. PTC also rose after reports of a $22.6 billion buyout offer, and Taiwan Semiconductor Manufacturing gained as investors reacted to discussions about a potential deal with Elon Musk’s Terafab chip factory.
The broader market rally was supported by reduced expectations of a Federal Reserve rate hike this month, following last week’s softer-than-expected jobs data. Tech giant Nvidia saw gains amid speculation that its market cap could soon reach $6 trillion, with strong earnings and AI demand countering bubble fears.
As earnings season approaches, analysts remain optimistic, with nearly 60% of S&P 500 companies rated as Buy. However, high expectations could make it difficult for companies to exceed forecasts without disappointing investors.